Earnings Miss: Jahez International Company for Information Systems Technology Missed EPS By 55% And Analysts Are Revising Their Forecasts

Jahez International Company for Information Systems Technology (TADAWUL:9526) just released its latest yearly report and things are not looking great. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at ر.س1.6b, statutory earnings missed forecasts by an incredible 55%, coming in at just ر.س5.70 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Jahez International Company for Information Systems Technology

Taking into account the latest results, the most recent consensus for Jahez International Company for Information Systems Technology from five analysts is for revenues of ر.س2.54b in 2023 which, if met, would be a major 58% increase on its sales over the past 12 months. Statutory earnings per share are predicted to jump 170% to ر.س15.19. In the lead-up to this report, the analysts had been modelling revenues of ر.س2.42b and earnings per share (EPS) of ر.س18.59 in 2023. So it's pretty clear the analysts have mixed opinions on Jahez International Company for Information Systems Technology after the latest results; even though they upped their revenue numbers, it came at the cost of a substantial drop in per-share earnings expectations.

The consensus price target fell 5.0% to ر.س876, suggesting that the analysts are primarily focused on earnings as the driver of value for this business. 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. There are some variant perceptions on Jahez International Company for Information Systems Technology, with the most bullish analyst valuing it at ر.س1,250 and the most bearish at ر.س671 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. The period to the end of 2023 brings more of the same, according to the analysts, with revenue forecast to display 58% growth on an annualised basis. That is in line with its 51% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 13% per year. So it's pretty clear that Jahez International Company for Information Systems Technology is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Jahez International Company for Information Systems Technology. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Jahez International Company for Information Systems Technology analysts - going out to 2025, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Jahez International Company for Information Systems Technology that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.