Analyst Estimates: Here's What Brokers Think Of Arabian Internet and Communication Services Company (TADAWUL:7202) After Its Third-Quarter Report

Arabian Internet and Communication Services Company (TADAWUL:7202) shareholders are probably feeling a little disappointed, since its shares fell 7.1% to ر.س234 in the week after its latest third-quarter results. Arabian Internet and Communication Services beat revenue expectations by 2.5%, at ر.س3.1b. Statutory earnings per share (EPS) came in at ر.س3.47, some 4.3% short of analyst estimates. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the most recent consensus for Arabian Internet and Communication Services from twelve analysts is for revenues of ر.س14.3b in 2026. If met, it would imply a notable 14% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to ascend 17% to ر.س15.25. In the lead-up to this report, the analysts had been modelling revenues of ر.س14.3b and earnings per share (EPS) of ر.س15.26 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

View our latest analysis for Arabian Internet and Communication Services

The analysts reconfirmed their price target of ر.س319, showing that the business is executing well and in line with expectations. 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. Currently, the most bullish analyst values Arabian Internet and Communication Services at ر.س400 per share, while the most bearish prices it at ر.س238. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Arabian Internet and Communication Services' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 11% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.1% per year. Even after the forecast slowdown in growth, it seems obvious that Arabian Internet and Communication Services is also expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider 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 forecasts for Arabian Internet and Communication Services going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Arabian Internet and Communication Services you should be aware of, and 1 of them shouldn't be ignored.

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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.