SABIC Agri-Nutrients Company Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

SABIC Agri-Nutrients Company (TADAWUL:2020) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. SABIC Agri-Nutrients missed analyst forecasts, with revenues of ر.س3.1b and statutory earnings per share (EPS) of ر.س2.07, falling short by 3.6% and 5.5% respectively. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the current consensus, from the nine analysts covering SABIC Agri-Nutrients, is for revenues of ر.س11.4b in 2025. This implies a measurable 2.1% reduction in SABIC Agri-Nutrients' revenue over the past 12 months. Statutory earnings per share are forecast to sink 11% to ر.س6.49 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of ر.س11.2b and earnings per share (EPS) of ر.س7.74 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.

Check out our latest analysis for SABIC Agri-Nutrients

It might be a surprise to learn that the consensus price target was broadly unchanged at ر.س124, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 SABIC Agri-Nutrients analyst has a price target of ر.س139 per share, while the most pessimistic values it at ر.س84.00. 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.

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 2.7% annualised decline to the end of 2025. That is a notable change from historical growth of 19% 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 2.6% 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 biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for SABIC Agri-Nutrients. 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.س124, 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 SABIC Agri-Nutrients. 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 SABIC Agri-Nutrients going out to 2027, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 2 warning signs for SABIC Agri-Nutrients (of which 1 shouldn't be ignored!) you should know about.

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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.