Analyst Estimates: Here's What Brokers Think Of Air Arabia PJSC (DFM:AIRARABIA) After Its Second-Quarter Report
Last week, you might have seen that Air Arabia PJSC (DFM:AIRARABIA) released its quarterly result to the market. The early response was not positive, with shares down 5.0% to د.إ4.98 in the past week. The result was fairly weak overall, with revenues of د.إ1.7b being 8.5% less than what the analysts had been modelling. 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.
Taking into account the latest results, the current consensus from Air Arabia PJSC's eight analysts is for revenues of د.إ8.26b in 2026. This would reflect an okay 6.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 5.2% to د.إ0.30. Yet prior to the latest earnings, the analysts had been anticipated revenues of د.إ8.31b and earnings per share (EPS) of د.إ0.30 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 small dip in their earnings per share forecasts.
See our latest analysis for Air Arabia PJSC
The consensus price target held steady at د.إ4.88, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Air Arabia PJSC at د.إ5.90 per share, while the most bearish prices it at د.إ3.75. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Air Arabia PJSC's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 14% growth on an annualised basis. This is compared to a historical growth rate of 19% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.8% annually. So it's pretty clear that, while Air Arabia PJSC's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Air Arabia PJSC. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Air Arabia PJSC going out to 2028, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 3 warning signs for Air Arabia PJSC (2 are a bit unpleasant!) that you should be aware 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.