Saudi Aramco Base Oil Company - Luberef (TADAWUL:2223) Analysts Just Cut Their EPS Forecasts Substantially

The latest analyst coverage could presage a bad day for Saudi Aramco Base Oil Company - Luberef (TADAWUL:2223), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.

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Following the latest downgrade, the five analysts covering Saudi Aramco Base Oil Company - Luberef provided consensus estimates of ر.س7.9b revenue in 2025, which would reflect a definite 17% decline on its sales over the past 12 months. Statutory earnings per share are anticipated to fall 14% to ر.س4.59 in the same period. Before this latest update, the analysts had been forecasting revenues of ر.س9.1b and earnings per share (EPS) of ر.س6.05 in 2025. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a pretty serious decline to earnings per share numbers as well.

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

Despite the cuts to forecast earnings, there was no real change to the ر.س116 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.

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. One more thing stood out to us about these estimates, and it's the idea that Saudi Aramco Base Oil Company - Luberef's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 31% to the end of 2025. This tops off a historical decline of 2.8% a year over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 1.9% per year. So while a broad number of companies are forecast to grow, unfortunately Saudi Aramco Base Oil Company - Luberef is expected to see its sales affected worse than other companies in the industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Saudi Aramco Base Oil Company - Luberef. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. The lack of change in the price target is puzzling in light of the downgrade but, with a serious decline expected this year, we wouldn't be surprised if investors were a bit wary of 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 2027, 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.