Need To Know: Analysts Just Made A Substantial Cut To Their SABIC Agri-Nutrients Company (TADAWUL:2020) Estimates

Today is shaping up negative for SABIC Agri-Nutrients Company (TADAWUL:2020) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

After the downgrade, the consensus from SABIC Agri-Nutrients' nine analysts is for revenues of ر.س10b in 2023, which would reflect a concerning 46% decline in sales compared to the last year of performance. Before the latest update, the analysts were foreseeing ر.س14b of revenue in 2023. The consensus view seems to have become more pessimistic on SABIC Agri-Nutrients, noting the pretty serious reduction to revenue estimates in this update.

View our latest analysis for SABIC Agri-Nutrients

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. We would highlight that sales are expected to reverse, with a forecast 46% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 40% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 5.7% annually for the foreseeable future. The forecasts do look bearish for SABIC Agri-Nutrients, since they're expecting it to shrink faster than the industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for SABIC Agri-Nutrients this year. They're also forecasting for revenues to shrink at a quicker rate than companies in the wider market. We wouldn't be surprised to find shareholders feeling a bit shell-shocked, after these downgrades. It looks like analysts have become a lot more bearish on SABIC Agri-Nutrients, and their negativity could be grounds for caution.

But wait - there's more! At least one of SABIC Agri-Nutrients' nine analysts has provided estimates out to 2025, which can be seen for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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