Stock Analysis

Analysts Just Slashed Their National Industrialization Company (TADAWUL:2060) Earnings Forecasts

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The latest analyst coverage could presage a bad day for National Industrialization Company (TADAWUL:2060), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

Following the latest downgrade, the current consensus, from the three analysts covering National Industrialization, is for revenues of ر.س2.8b in 2023, which would reflect a substantial 33% reduction in National Industrialization's sales over the past 12 months. Before the latest update, the analysts were foreseeing ر.س3.2b of revenue in 2023. It looks like forecasts have become a fair bit less optimistic on National Industrialization, given the substantial drop in revenue estimates.

View our latest analysis for National Industrialization

SASE:2060 Earnings and Revenue Growth November 2nd 2022

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would also point out that the forecast 27% annualised revenue decline to the end of 2023 is roughly in line with the historical trend, which saw revenues shrink 28% annually over the past five years By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue shrink 5.5% per year. While this is interesting, National Industrialization's, revenues are still expected to shrink next year, and at a faster rate than the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for National Industrialization next year. Analysts also expect revenues to shrink faster than the wider market. After a cut like that, investors could be forgiven for thinking analysts are a lot more bearish on National Industrialization, and a few readers might choose to steer clear of the stock.

Unsatisfied? We have estimates for National Industrialization from its three analysts out until 2024, and you can see them free on our platform here.

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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.