Al Hammadi Holding Company Just Missed Earnings - But Analysts Have Updated Their Models

As you might know, Al Hammadi Holding Company (TADAWUL:4007) last week released its latest quarterly, and things did not turn out so great for shareholders. Results showed a clear earnings miss, with ر.س295m revenue coming in 7.2% lower than what the analystsexpected. Statutory earnings per share (EPS) of ر.س0.32 missed the mark badly, arriving some 38% below what was expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Al Hammadi Holding after the latest results.

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Taking into account the latest results, the most recent consensus for Al Hammadi Holding from seven analysts is for revenues of ر.س1.40b in 2026. If met, it would imply a meaningful 15% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to expand 18% to ر.س1.96. In the lead-up to this report, the analysts had been modelling revenues of ر.س1.41b and earnings per share (EPS) of ر.س2.04 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

Check out our latest analysis for Al Hammadi Holding

The consensus price target held steady at ر.س42.13, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 Al Hammadi Holding at ر.س47.30 per share, while the most bearish prices it at ر.س38.00. This is a very narrow spread of estimates, implying either that Al Hammadi Holding is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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 analysts are definitely expecting Al Hammadi Holding's growth to accelerate, with the forecast 12% annualised growth to the end of 2026 ranking favourably alongside historical growth of 8.4% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 13% per year. Al Hammadi Holding is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at ر.س42.13, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Al Hammadi Holding going out to 2027, and you can see them free on our platform here..

It is also worth noting that we have found 1 warning sign for Al Hammadi Holding that you need to take into consideration.

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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.