Earnings Beat: Dr. Sulaiman Al Habib Medical Services Group Company Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Dr. Sulaiman Al Habib Medical Services Group Company (TADAWUL:4013) just released its first-quarter report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 5.3% to hit ر.س1.7b. Dr. Sulaiman Al Habib Medical Services Group reported statutory earnings per share (EPS) ر.س0.91, which was a notable 14% above what the analysts had forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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

After the latest results, the two analysts covering Dr. Sulaiman Al Habib Medical Services Group are now predicting revenues of ر.س6.68b in 2021. If met, this would reflect a credible 7.4% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to swell 15% to ر.س3.48. Yet prior to the latest earnings, the analysts had been anticipated revenues of ر.س6.43b and earnings per share (EPS) of ر.س3.39 in 2021. 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.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 23% to ر.س107per share.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Dr. Sulaiman Al Habib Medical Services Group's revenue growth is expected to slow, with the forecast 10% annualised growth rate until the end of 2021 being well below the historical 22% growth over the last year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 9.0% annually. So it's pretty clear that, while Dr. Sulaiman Al Habib Medical Services Group'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 Dr. Sulaiman Al Habib Medical Services Group 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. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Dr. Sulaiman Al Habib Medical Services Group that you need to be mindful of.

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