SAL Saudi Logistics Services Company Just Missed EPS By 7.8%: Here's What Analysts Think Will Happen Next

SAL Saudi Logistics Services Company (TADAWUL:4263) just released its latest full-year report and things are not looking great. SAL Saudi Logistics Services missed analyst forecasts, with revenues of ر.س1.6b and statutory earnings per share (EPS) of ر.س8.27, falling short by 6.3% and 7.8% respectively. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for SAL Saudi Logistics Services

Taking into account the latest results, the consensus forecast from SAL Saudi Logistics Services' three analysts is for revenues of ر.س1.79b in 2025. This reflects a meaningful 9.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 7.6% to ر.س8.90. In the lead-up to this report, the analysts had been modelling revenues of ر.س1.98b and earnings per share (EPS) of ر.س10.22 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the ر.س263 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic SAL Saudi Logistics Services analyst has a price target of ر.س320 per share, while the most pessimistic values it at ر.س200. 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 SAL Saudi Logistics Services shareholders.

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. We would highlight that SAL Saudi Logistics Services' revenue growth is expected to slow, with the forecast 9.5% annualised growth rate until the end of 2025 being well below the historical 17% p.a. growth over the last three years. Compare this to the 201 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 7.9% per year. Factoring in the forecast slowdown in growth, it looks like SAL Saudi Logistics Services is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for SAL Saudi Logistics Services. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as 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. At Simply Wall St, we have a full range of analyst estimates for SAL Saudi Logistics Services going out to 2027, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months 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.