Stock Analysis

Sadot Group Inc. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

NasdaqCM:SDOT
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It's been a sad week for Sadot Group Inc. (NASDAQ:SDOT), who've watched their investment drop 10% to US$3.36 in the week since the company reported its third-quarter result. Statutory earnings per share disappointed, coming in -62% short of expectations, at US$0.23. Fortunately revenue performance was a lot stronger at US$202m arriving 16% ahead of predictions. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Sadot Group

earnings-and-revenue-growth
NasdaqCM:SDOT Earnings and Revenue Growth November 16th 2024

Taking into account the latest results, the current consensus from Sadot Group's twin analysts is for revenues of US$875.9m in 2025. This would reflect a substantial 34% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 113% to US$0.60. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$703.8m and earnings per share (EPS) of US$2.40 in 2025. Although revenues are expected to increase meaningfully, the analysts have acknowledged the cost of growth, given the large cut to EPS estimates following the latest report.

The analysts also upgraded Sadot Group's price target 9.4% to US$35.00, implying that the higher revenue expected to generate enough value to offset the forecast decline in earnings.

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. We would highlight that Sadot Group's revenue growth is expected to slow, with the forecast 26% annualised growth rate until the end of 2025 being well below the historical 75% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 2.7% per year. So it's pretty clear that, while Sadot Group's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Plus, you should also learn about the 4 warning signs we've spotted with Sadot Group .

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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.