Sadot Group Inc. Beat Analyst Profit Forecasts, And Analysts Have New Estimates

Investors in Sadot Group Inc. (NASDAQ:SDOT) had a good week, as its shares rose 6.5% to close at US$0.47 following the release of its second-quarter results. Sadot Group beat expectations by 9.6% with revenues of US$175m. It also surprised on the earnings front, with an unexpected statutory profit of US$0.05 per share a nice improvement on the losses that the analysts forecast. 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.

Check out our latest analysis for Sadot Group

Following last week's earnings report, Sadot Group's two analysts are forecasting 2024 revenues to be US$641.8m, approximately in line with the last 12 months. Earnings are expected to improve, with Sadot Group forecast to report a statutory profit of US$0.20 per share. Before this earnings announcement, the analysts had been modelling revenues of US$609.7m and losses of US$0.02 per share in 2024. So we can see there's been a pretty clear upgrade to expectations following the latest results, with a small lift in revenues expected to lead to profitability earlier than previously forecast.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 9.4% to US$3.50per share.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Sadot Group's revenue growth is expected to slow, with the forecast 1.7% annualised growth rate until the end of 2024 being well below the historical 80% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.1% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Sadot Group.

The Bottom Line

The most important thing to take away is that the analysts now expect Sadot Group to become profitable next year, compared to previous expectations that it would report a loss. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Sadot Group. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Sadot Group going out as far as 2025, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 4 warning signs for Sadot Group you should be aware of, and 1 of them is potentially serious.

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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.