Arabian Internet and Communication Services Company (TADAWUL:7202) First-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Investors in Arabian Internet and Communication Services Company (TADAWUL:7202) had a good week, as its shares rose 3.1% to close at ر.س296 following the release of its first-quarter results. Results overall were respectable, with statutory earnings of ر.س2.53 per share roughly in line with what the analysts had forecast. Revenues of ر.س2.7b came in 4.0% ahead of analyst predictions. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Arabian Internet and Communication Services

Taking into account the latest results, the current consensus from Arabian Internet and Communication Services' eight analysts is for revenues of ر.س11.0b in 2023, which would reflect a meaningful 19% increase on its sales over the past 12 months. Statutory earnings per share are predicted to rise 9.5% to ر.س9.88. Yet prior to the latest earnings, the analysts had been anticipated revenues of ر.س10.8b and earnings per share (EPS) of ر.س9.88 in 2023. 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.س294, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Arabian Internet and Communication Services analyst has a price target of ر.س311 per share, while the most pessimistic values it at ر.س280. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Arabian Internet and Communication Services' growth to accelerate, with the forecast 26% annualised growth to the end of 2023 ranking favourably alongside historical growth of 10% per annum over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.3% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Arabian Internet and Communication Services is expected to grow much faster than its 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 2025, and you can see them free on our platform here.

We also provide an overview of the Arabian Internet and Communication Services Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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

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.