Earnings Beat: Mobile Telecommunications Company Saudi Arabia Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models
Mobile Telecommunications Company Saudi Arabia (TADAWUL:7030) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at ر.س2.7b, statutory earnings beat expectations by a notable 40%, coming in at ر.س0.23 per share. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the consensus forecast from Mobile Telecommunications Company Saudi Arabia's six analysts is for revenues of ر.س11.2b in 2026. This reflects a modest 2.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to decrease 9.9% to ر.س0.79 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of ر.س11.4b and earnings per share (EPS) of ر.س0.84 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.
See our latest analysis for Mobile Telecommunications Company Saudi Arabia
It might be a surprise to learn that the consensus price target was broadly unchanged at ر.س11.39, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 Mobile Telecommunications Company Saudi Arabia at ر.س15.00 per share, while the most bearish prices it at ر.س9.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Mobile Telecommunications Company Saudi Arabia's revenue growth is expected to slow, with the forecast 5.5% annualised growth rate until the end of 2026 being well below the historical 7.2% p.a. growth over the last five years. Compare this to the 51 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 5.2% per year. Factoring in the forecast slowdown in growth, it looks like Mobile Telecommunications Company Saudi Arabia is forecast to grow at about the same rate as the wider industry.
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, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 Mobile Telecommunications Company Saudi Arabia going out to 2028, and you can see them free on our platform here..
We don't want to rain on the parade too much, but we did also find 1 warning sign for Mobile Telecommunications Company Saudi Arabia that you need to be mindful of.
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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.