Etihad Etisalat Company Just Recorded A 13% EPS Beat: Here's What Analysts Are Forecasting Next

Investors in Etihad Etisalat Company (TADAWUL:7020) had a good week, as its shares rose 2.8% to close at ر.س60.95 following the release of its second-quarter results. Revenues were ر.س4.8b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of ر.س1.07 were also better than expected, beating analyst predictions by 13%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the consensus forecast from Etihad Etisalat's nine analysts is for revenues of ر.س19.5b in 2025. This reflects a satisfactory 3.7% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be ر.س4.44, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of ر.س19.4b and earnings per share (EPS) of ر.س4.10 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

View our latest analysis for Etihad Etisalat

The consensus price target was unchanged at ر.س66.71, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. There are some variant perceptions on Etihad Etisalat, with the most bullish analyst valuing it at ر.س75.00 and the most bearish at ر.س59.00 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Etihad Etisalat is an easy business to forecast or the the analysts are all using similar assumptions.

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. It's clear from the latest estimates that Etihad Etisalat's rate of growth is expected to accelerate meaningfully, with the forecast 7.6% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 6.4% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.3% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Etihad Etisalat to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Etihad Etisalat's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at ر.س66.71, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Etihad Etisalat going out to 2027, and you can see them free on our platform here..

You can also view our analysis of Etihad Etisalat's balance sheet, and whether we think Etihad Etisalat is carrying too much debt, for free on our platform 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.