Arabian Internet and Communication Services Company Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year

Arabian Internet and Communication Services Company (TADAWUL:7202) shareholders are probably feeling a little disappointed, since its shares fell 4.5% to ر.س255 in the week after its latest third-quarter results. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at ر.س2.8b, statutory earnings beat expectations by a notable 18%, coming in at ر.س3.95 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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 Arabian Internet and Communication Services

Following the latest results, Arabian Internet and Communication Services' 14 analysts are now forecasting revenues of ر.س13.1b in 2025. This would be a meaningful 17% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 8.4% to ر.س13.04. In the lead-up to this report, the analysts had been modelling revenues of ر.س13.2b and earnings per share (EPS) of ر.س13.09 in 2025. 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.

The analysts reconfirmed their price target of ر.س314, 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. The most optimistic Arabian Internet and Communication Services analyst has a price target of ر.س395 per share, while the most pessimistic values it at ر.س244. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Arabian Internet and Communication Services' past performance and to peers in the same industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 14% growth on an annualised basis. That is in line with its 15% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.7% annually. So although Arabian Internet and Communication Services is expected to maintain its revenue growth rate, it's definitely 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Arabian Internet and Communication Services going out to 2026, 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 1 warning sign for Arabian Internet and Communication Services 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.