Earnings Update: Almarai Company (TADAWUL:2280) Just Reported Its Second-Quarter Results And Analysts Are Updating Their Forecasts

Last week, you might have seen that Almarai Company (TADAWUL:2280) released its second-quarter result to the market. The early response was not positive, with shares down 3.8% to ر.س49.22 in the past week. Results were roughly in line with estimates, with revenues of ر.س5.3b and statutory earnings per share of ر.س2.31. 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. 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, Almarai's twelve analysts currently expect revenues in 2025 to be ر.س22.1b, approximately in line with the last 12 months. Per-share earnings are expected to rise 3.2% to ر.س2.50. Yet prior to the latest earnings, the analysts had been anticipated revenues of ر.س22.2b and earnings per share (EPS) of ر.س2.50 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

View our latest analysis for Almarai

There were no changes to revenue or earnings estimates or the price target of ر.س62.93, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Almarai at ر.س71.50 per share, while the most bearish prices it at ر.س50.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Almarai's past performance and to peers in the same industry. We would highlight that Almarai's revenue growth is expected to slow, with the forecast 2.7% annualised growth rate until the end of 2025 being well below the historical 8.0% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.3% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Almarai.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Almarai's revenue is expected to perform worse than the wider industry. The consensus price target held steady at ر.س62.93, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Almarai. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Almarai going out to 2027, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 2 warning signs for Almarai you should know about.

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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.