SAL Saudi Logistics Services Company Just Missed Revenue By 7.7%: Here's What Analysts Think Will Happen Next

SAL Saudi Logistics Services Company (TADAWUL:4263) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. SAL Saudi Logistics Services missed analyst forecasts, with revenues of ر.س384m and statutory earnings per share (EPS) of ر.س1.91, falling short by 7.7% and 3.0% respectively. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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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Following the latest results, SAL Saudi Logistics Services' six analysts are now forecasting revenues of ر.س1.74b in 2025. This would be a solid 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 16% to ر.س8.80. In the lead-up to this report, the analysts had been modelling revenues of ر.س1.68b and earnings per share (EPS) of ر.س7.80 in 2025. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a decent improvement in earnings per share in particular.

See our latest analysis for SAL Saudi Logistics Services

Despite these upgrades,the analysts have not made any major changes to their price target of ر.س207, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. 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. Currently, the most bullish analyst values SAL Saudi Logistics Services at ر.س320 per share, while the most bearish prices it at ر.س161. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that SAL Saudi Logistics Services' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 15% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 0.2% a year over the past year. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 7.2% annually. So it looks like SAL Saudi Logistics Services is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around SAL Saudi Logistics Services' earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at ر.س207, 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. We have estimates - from multiple SAL Saudi Logistics Services analysts - going out to 2027, and you can see them free on our platform here.

You can also see our analysis of SAL Saudi Logistics Services' 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.