Analyst Estimates: Here's What Brokers Think Of SABIC Agri-Nutrients Company (TADAWUL:2020) After Its Yearly Report

Last week saw the newest annual earnings release from SABIC Agri-Nutrients Company (TADAWUL:2020), an important milestone in the company's journey to build a stronger business. It looks like the results were a bit of a negative overall. While revenues of ر.س11b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.7% to hit ر.س7.69 per share. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for SABIC Agri-Nutrients

Taking into account the latest results, SABIC Agri-Nutrients' nine analysts currently expect revenues in 2024 to be ر.س11.0b, approximately in line with the last 12 months. Statutory earnings per share are predicted to accumulate 2.4% to ر.س7.87. Before this earnings report, the analysts had been forecasting revenues of ر.س11.0b and earnings per share (EPS) of ر.س7.92 in 2024. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ر.س140. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic SABIC Agri-Nutrients analyst has a price target of ر.س159 per share, while the most pessimistic values it at ر.س121. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 0.3% annualised decline to the end of 2024. That is a notable change from historical growth of 36% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 5.1% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - SABIC Agri-Nutrients is expected to lag 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, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that SABIC Agri-Nutrients' revenue is expected to perform worse than the wider industry. The consensus price target held steady at ر.س140, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for SABIC Agri-Nutrients going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for SABIC Agri-Nutrients 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.