Saudi Telecom Company Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Last week, you might have seen that Saudi Telecom Company (TADAWUL:7010) released its quarterly result to the market. The early response was not positive, with shares down 4.6% to ر.س40.20 in the past week. Revenues were ر.س19b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at ر.س0.93, an impressive 29% ahead of 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Saudi Telecom after the latest results.

Check out our latest analysis for Saudi Telecom

After the latest results, the 14 analysts covering Saudi Telecom are now predicting revenues of ر.س79.9b in 2025. If met, this would reflect an okay 7.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 4.8% to ر.س2.80. In the lead-up to this report, the analysts had been modelling revenues of ر.س79.9b and earnings per share (EPS) of ر.س2.80 in 2025. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ر.س44.81. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Saudi Telecom, with the most bullish analyst valuing it at ر.س48.40 and the most bearish at ر.س42.00 per share. This is a very narrow spread of estimates, implying either that Saudi Telecom is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Saudi Telecom's 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 5.8% growth on an annualised basis. That is in line with its 6.8% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.9% annually. So it's pretty clear that Saudi Telecom is forecast to grow substantially 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. 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. The consensus price target held steady at ر.س44.81, with the latest estimates not enough to have an impact on their price targets.

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. At Simply Wall St, we have a full range of analyst estimates for Saudi Telecom going out to 2026, and you can see them free on our platform here..

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

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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.