Time To Worry? Analysts Just Downgraded Their Mouwasat Medical Services Company (TADAWUL:4002) Outlook

The analysts covering Mouwasat Medical Services Company (TADAWUL:4002) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

Following the downgrade, the most recent consensus for Mouwasat Medical Services from its seven analysts is for revenues of ر.س2.3b in 2022 which, if met, would be a satisfactory 4.4% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing ر.س2.5b of revenue in 2022. It looks like forecasts have become a fair bit less optimistic on Mouwasat Medical Services, given the substantial drop in revenue estimates.

See our latest analysis for Mouwasat Medical Services

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Mouwasat Medical Services' past performance and to peers in the same industry. It's pretty clear that there is an expectation that Mouwasat Medical Services' revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 5.9% growth on an annualised basis. This is compared to a historical growth rate of 9.7% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 12% per year. Factoring in the forecast slowdown in growth, it seems obvious that Mouwasat Medical Services is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They're also anticipating slower revenue growth than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Mouwasat Medical Services after today.

Thirsting for more data? At least one of Mouwasat Medical Services' seven analysts has provided estimates out to 2024, which can be seen for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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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.