Analysts Are Updating Their Herfy Food Services Company (TADAWUL:6002) Estimates After Its Third-Quarter Results

Herfy Food Services Company (TADAWUL:6002) shareholders are probably feeling a little disappointed, since its shares fell 8.2% to ر.س19.00 in the week after its latest third-quarter results. The result was fairly weak overall, with revenues of ر.س265m being 8.6% less than what the analysts had been modelling. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the consensus forecast from Herfy Food Services' five analysts is for revenues of ر.س1.17b in 2026. This reflects a meaningful 9.0% improvement in revenue compared to the last 12 months. Herfy Food Services is also expected to turn profitable, with statutory earnings of ر.س0.18 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of ر.س1.21b and earnings per share (EPS) of ر.س0.16 in 2026. Although the analysts have lowered their revenue forecasts, they've also made a nice increase in their earnings per share estimates, which implies there's been something of an uptick in sentiment following the latest results.

See our latest analysis for Herfy Food Services

There's been no real change to the average price target of ر.س20.94, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Herfy Food Services analyst has a price target of ر.س26.00 per share, while the most pessimistic values it at ر.س16.60. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. For example, we noticed that Herfy Food Services' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 7.2% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 1.5% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 8.6% per year. So while Herfy Food Services' revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Herfy Food Services' earnings potential next year. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. Still, earnings per share are more important to value creation for shareholders. The consensus price target held steady at ر.س20.94, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Herfy Food Services going out to 2027, and you can see them free on our platform here.

We also provide an overview of the Herfy Food Services Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.