Arabian Internet and Communication Services Company Just Missed Earnings And Its Revenue Numbers Were Weaker Than Expected

It's been a good week for Arabian Internet and Communication Services Company (TADAWUL:7202) shareholders, because the company has just released its latest quarterly results, and the shares gained 2.3% to ر.س292. Results look mixed - while revenue fell marginally short of analyst estimates at ر.س2.8b, statutory earnings were in line with expectations, at ر.س9.93 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Arabian Internet and Communication Services after the latest results.

View our latest analysis for Arabian Internet and Communication Services

Taking into account the latest results, the most recent consensus for Arabian Internet and Communication Services from eleven analysts is for revenues of ر.س12.1b in 2024. If met, it would imply a satisfactory 7.5% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 5.4% to ر.س12.00. Before this earnings report, the analysts had been forecasting revenues of ر.س12.2b and earnings per share (EPS) of ر.س11.90 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of ر.س328, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Arabian Internet and Communication Services at ر.س420 per share, while the most bearish prices it at ر.س250. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Arabian Internet and Communication Services shareholders.

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. We can infer from the latest estimates that forecasts expect a continuation of Arabian Internet and Communication Services'historical trends, as the 16% annualised revenue growth to the end of 2024 is roughly in line with the 17% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.3% 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 important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Arabian Internet and Communication Services. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Arabian Internet and Communication Services going out to 2026, and you can see them free on our platform here..

It is also worth noting that we have found 2 warning signs for Arabian Internet and Communication Services (1 is potentially serious!) that you need to take into consideration.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com