Sahara International Petrochemical Company Just Beat EPS By 107%: Here's What Analysts Think Will Happen Next

Sahara International Petrochemical Company (TADAWUL:2310) just released its latest first-quarter results and things are looking bullish. Sahara International Petrochemical delivered a significant beat to revenue and earnings per share (EPS) expectations, hitting ر.س2.0b-14% above indicated-andر.س0.27-107% above forecasts- respectively 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.

We've discovered 2 warning signs about Sahara International Petrochemical. View them for free.

Taking into account the latest results, the consensus forecast from Sahara International Petrochemical's seven analysts is for revenues of ر.س7.25b in 2025. This reflects an okay 2.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 118% to ر.س1.32. Yet prior to the latest earnings, the analysts had been anticipated revenues of ر.س6.84b and earnings per share (EPS) of ر.س1.21 in 2025. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

View our latest analysis for Sahara International Petrochemical

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of ر.س29.34, suggesting that the forecast performance does not have a long term impact on the company's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Sahara International Petrochemical analyst has a price target of ر.س45.10 per share, while the most pessimistic values it at ر.س22.70. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Sahara International Petrochemical's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.7% growth on an annualised basis. This is compared to a historical growth rate of 4.3% over the past five years. Compare this to the 18 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 2.2% per year. Factoring in the forecast slowdown in growth, it looks like Sahara International Petrochemical is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Sahara International Petrochemical's earnings potential next year. They also upgraded their revenue forecasts, although the latest estimates suggest that Sahara International Petrochemical will grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Sahara International Petrochemical analysts - going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for Sahara International Petrochemical that you need to be mindful of.

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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.