Earnings Update: National Medical Care Company (TADAWUL:4005) Just Reported Its Annual Results And Analysts Are Updating Their Forecasts

As you might know, National Medical Care Company (TADAWUL:4005) recently reported its full-year numbers. It was an okay report, and revenues came in at ر.س845m, approximately in line with analyst estimates leading up to the results announcement. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for National Medical Care

Following the latest results, National Medical Care's two analysts are now forecasting revenues of ر.س900.2m in 2022. This would be an okay 6.5% improvement in sales compared to the last 12 months. Per-share earnings are expected to accumulate 5.6% to ر.س3.21. Before this earnings report, the analysts had been forecasting revenues of ر.س947.4m and earnings per share (EPS) of ر.س3.37 in 2022. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the ر.س73.80 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the National Medical Care's past performance and to peers in the same industry. For example, we noticed that National Medical Care's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 6.5% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 1.1% 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 9.3% per year. So although National Medical Care's revenue growth is expected to improve, it is still expected to grow slower than the industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates revenues are expected to perform worse than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for National Medical Care going out as far as 2024, and you can see them free on our platform here.

You can also see our analysis of National Medical Care's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.