Analyst Estimates: Here's What Brokers Think Of Elm Company (TADAWUL:7203) After Its Yearly Report

Shareholders might have noticed that Elm Company (TADAWUL:7203) filed its annual result this time last week. The early response was not positive, with shares down 8.1% to ر.س964 in the past week. Results overall were respectable, with statutory earnings of ر.س16.95 per share roughly in line with what the analysts had forecast. Revenues of ر.س5.9b came in 2.5% ahead of analyst predictions. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Elm

Taking into account the latest results, the current consensus from Elm's five analysts is for revenues of ر.س7.16b in 2024. This would reflect a substantial 21% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to grow 16% to ر.س20.22. In the lead-up to this report, the analysts had been modelling revenues of ر.س7.03b and earnings per share (EPS) of ر.س20.58 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.

The analysts reconfirmed their price target of ر.س840, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Elm, with the most bullish analyst valuing it at ر.س1,180 and the most bearish at ر.س567 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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 can infer from the latest estimates that forecasts expect a continuation of Elm'shistorical trends, as the 21% annualised revenue growth to the end of 2024 is roughly in line with the 22% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.9% annually. So although Elm 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 Elm going out to 2026, and you can see them free on our platform here.

You can also see our analysis of Elm's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.