Earnings Miss: Dr. Sulaiman Al Habib Medical Services Group Company Missed EPS By 5.3% And Analysts Are Revising Their Forecasts

Dr. Sulaiman Al Habib Medical Services Group Company (TADAWUL:4013) shareholders are probably feeling a little disappointed, since its shares fell 3.6% to ر.س276 in the week after its latest first-quarter results. Revenues of ر.س3.2b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ر.س1.59, missing estimates by 5.3%. 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.

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After the latest results, the twelve analysts covering Dr. Sulaiman Al Habib Medical Services Group are now predicting revenues of ر.س13.6b in 2025. If met, this would reflect a decent 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 10% to ر.س7.32. Yet prior to the latest earnings, the analysts had been anticipated revenues of ر.س13.6b and earnings per share (EPS) of ر.س7.26 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

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

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ر.س313. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Dr. Sulaiman Al Habib Medical Services Group, with the most bullish analyst valuing it at ر.س360 and the most bearish at ر.س245 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Dr. Sulaiman Al Habib Medical Services Group's rate of growth is expected to accelerate meaningfully, with the forecast 20% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 15% p.a. 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 12% 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 obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. 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 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. We have forecasts for Dr. Sulaiman Al Habib Medical Services Group going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for Dr. Sulaiman Al Habib Medical Services Group (1 is a bit unpleasant!) that you need to be mindful of.

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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.