Revenue Beat: Jarir Marketing Company Beat Analyst Estimates By 12%

Jarir Marketing Company (TADAWUL:4190) last week reported its latest second-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Jarir Marketing beat revenue forecasts by a solid 12% to hit ر.س2.4b. Statutory earnings per share came in at ر.س0.81, in line with expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Jarir Marketing

Taking into account the latest results, Jarir Marketing's eleven analysts currently expect revenues in 2023 to be ر.س10.4b, approximately in line with the last 12 months. Statutory per share are forecast to be ر.س0.79, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of ر.س10.1b and earnings per share (EPS) of ر.س0.84 in 2023. Overall it looks as though the analysts were a bit mixed on the latest results. Although there was a to revenue, the consensus also made a minor downgrade to its earnings per share forecasts.

The consensus price target was unchanged at ر.س17.91, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Jarir Marketing analyst has a price target of ر.س20.60 per share, while the most pessimistic values it at ر.س14.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Jarir Marketing's revenue growth is expected to slow, with the forecast 4.0% annualised growth rate until the end of 2023 being well below the historical 5.7% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 11% per year. Factoring in the forecast slowdown in growth, it seems obvious that Jarir Marketing is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Jarir Marketing. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. The consensus price target held steady at ر.س17.91, with the latest estimates not enough to have an impact on their price targets.

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. At Simply Wall St, we have a full range of analyst estimates for Jarir Marketing going out to 2025, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with Jarir Marketing .

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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.