Dallah Healthcare Company (TADAWUL:4004) Second-Quarter Results: Here's What Analysts Are Forecasting For This Year

Investors in Dallah Healthcare Company (TADAWUL:4004) had a good week, as its shares rose 2.7% to close at ر.س166 following the release of its quarterly results. It was a workmanlike result, with revenues of ر.س765m coming in 3.1% ahead of expectations, and statutory earnings per share of ر.س3.70, in line with analyst appraisals. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Dallah Healthcare

Taking into account the latest results, the consensus forecast from Dallah Healthcare's nine analysts is for revenues of ر.س3.34b in 2024. This reflects an okay 7.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 2.7% to ر.س4.66. Yet prior to the latest earnings, the analysts had been anticipated revenues of ر.س3.24b and earnings per share (EPS) of ر.س4.46 in 2024. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

Despite these upgrades,the analysts have not made any major changes to their price target of ر.س159, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. 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. Currently, the most bullish analyst values Dallah Healthcare at ر.س183 per share, while the most bearish prices it at ر.س105. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Dallah Healthcare shareholders.

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. We would highlight that Dallah Healthcare's revenue growth is expected to slow, with the forecast 15% annualised growth rate until the end of 2024 being well below the historical 22% p.a. growth over the last five years. Compare this to the 20 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 13% per year. So it's pretty clear that, while Dallah Healthcare's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Dallah Healthcare following these results. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target held steady at ر.س159, 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 Dallah Healthcare. Long-term earnings power is much more important than next year's profits. We have forecasts for Dallah Healthcare going out to 2026, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Dallah Healthcare , and understanding this should be part of your investment process.

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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.