Sahara International Petrochemical Company Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Investors in Sahara International Petrochemical Company (TADAWUL:2310) had a good week, as its shares rose 2.3% to close at ر.س31.50 following the release of its full-year results. It was a pretty mixed result, with revenues beating expectations to hit ر.س7.6b. Statutory earnings fell 5.9% short of analyst forecasts, reaching ر.س1.62 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Sahara International Petrochemical

Following last week's earnings report, Sahara International Petrochemical's five analysts are forecasting 2024 revenues to be ر.س7.51b, approximately in line with the last 12 months. Statutory earnings per share are predicted to bounce 27% to ر.س2.05. Before this earnings report, the analysts had been forecasting revenues of ر.س7.64b and earnings per share (EPS) of ر.س2.28 in 2024. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.

The consensus price target held steady at ر.س38.92, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Sahara International Petrochemical, with the most bullish analyst valuing it at ر.س45.10 and the most bearish at ر.س31.50 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.4% by the end of 2024. This indicates a significant reduction from annual growth of 15% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.2% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Sahara International Petrochemical is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at ر.س38.92, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Sahara International Petrochemical going out to 2026, and you can see them free on our platform here..

Plus, you should also learn about the 2 warning signs we've spotted with Sahara International Petrochemical .

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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.