Analysts Just Shipped A Notable Upgrade To Their Saudi Aramco Base Oil Company - Luberef (TADAWUL:2223) Estimates

Shareholders in Saudi Aramco Base Oil Company - Luberef (TADAWUL:2223) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Following the upgrade, the latest consensus from Saudi Aramco Base Oil Company - Luberef's five analysts is for revenues of ر.س9.8b in 2023, which would reflect a major 41% improvement in sales compared to the last 12 months. Statutory earnings per share are anticipated to fall 17% to ر.س10.54 in the same period. Prior to this update, the analysts had been forecasting revenues of ر.س8.8b and earnings per share (EPS) of ر.س8.94 in 2023. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

See our latest analysis for Saudi Aramco Base Oil Company - Luberef

Despite these upgrades, the analysts have not made any major changes to their price target of ر.س127, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. For example, we noticed that Saudi Aramco Base Oil Company - Luberef's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 98% growth to the end of 2023 on an annualised basis. That is well above its historical decline of 20% a year over the past year. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 0.6% per year. So it looks like Saudi Aramco Base Oil Company - Luberef is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. The lack of change in the price target is puzzling, but with a serious upgrade to this year's earnings expectations, it might be time to take another look at Saudi Aramco Base Oil Company - Luberef.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Saudi Aramco Base Oil Company - Luberef analysts - going out to 2025, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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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.