Dr. Sulaiman Al Habib Medical Services Group Company (TADAWUL:4013) Just Released Its First-Quarter Results And Analysts Are Updating Their Estimates

Dr. Sulaiman Al Habib Medical Services Group Company (TADAWUL:4013) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Revenues came in 2.3% below expectations, at ر.س2.5b. Statutory earnings per share were relatively better off, with a per-share profit of ر.س5.85 being roughly in line with analyst estimates. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Dr. Sulaiman Al Habib Medical Services Group after the latest results.

See our latest analysis for Dr. Sulaiman Al Habib Medical Services Group

Taking into account the latest results, the current consensus from Dr. Sulaiman Al Habib Medical Services Group's eight analysts is for revenues of ر.س11.3b in 2024. This would reflect a solid 16% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 5.3% to ر.س6.34. Before this earnings report, the analysts had been forecasting revenues of ر.س11.5b and earnings per share (EPS) of ر.س6.22 in 2024. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.

The average price target was steady at ر.س290even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Dr. Sulaiman Al Habib Medical Services Group analyst has a price target of ر.س345 per share, while the most pessimistic values it at ر.س200. 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 Dr. Sulaiman Al Habib Medical Services Group 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. The analysts are definitely expecting Dr. Sulaiman Al Habib Medical Services Group's growth to accelerate, with the forecast 22% annualised growth to the end of 2024 ranking favourably alongside historical growth of 16% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 14% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Dr. Sulaiman Al Habib Medical Services Group to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Even so, earnings are more important to the intrinsic value of the business. The consensus price target held steady at ر.س290, 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 Dr. Sulaiman Al Habib Medical Services Group. 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 Dr. Sulaiman Al Habib Medical Services Group going out to 2026, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 2 warning signs for Dr. Sulaiman Al Habib Medical Services Group you should be aware of, and 1 of them is significant.

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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.