Fawaz Abdulaziz Al Hokair & Company (TADAWUL:4240) Annual Results Just Came Out: Here's What Analysts Are Forecasting For This Year

One of the biggest stories of last week was how Fawaz Abdulaziz Al Hokair & Company (TADAWUL:4240) shares plunged 28% in the week since its latest yearly results, closing yesterday at ر.س12.10. Revenues were ر.س5.2b, with Fawaz Abdulaziz Al Hokair reporting some 6.9% below analyst expectations. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Fawaz Abdulaziz Al Hokair

Taking into account the latest results, Fawaz Abdulaziz Al Hokair's five analysts currently expect revenues in 2024 to be ر.س5.28b, approximately in line with the last 12 months. Fawaz Abdulaziz Al Hokair is also expected to turn profitable, with statutory earnings of ر.س0.45 per share. Before this earnings report, the analysts had been forecasting revenues of ر.س5.50b and earnings per share (EPS) of ر.س0.55 in 2024. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.

The analysts made no major changes to their price target of ر.س17.36, suggesting the downgrades are not expected to have a long-term impact on Fawaz Abdulaziz Al Hokair's valuation. 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. The most optimistic Fawaz Abdulaziz Al Hokair analyst has a price target of ر.س22.10 per share, while the most pessimistic values it at ر.س13.30. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. We would highlight that Fawaz Abdulaziz Al Hokair's revenue growth is expected to slow, with the forecast 0.8% annualised growth rate until the end of 2024 being well below the historical 3.4% 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 9.3% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Fawaz Abdulaziz Al Hokair.

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 negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target held steady at ر.س17.36, 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. We have estimates - from multiple Fawaz Abdulaziz Al Hokair analysts - 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 Fawaz Abdulaziz Al Hokair (including 1 which is a bit unpleasant) .

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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.