TECOM Group PJSC Just Beat Revenue By 6.4%: Here's What Analysts Think Will Happen Next

As you might know, TECOM Group PJSC (DFM:TECOM) recently reported its second-quarter numbers. It was a workmanlike result, with revenues of د.إ786m coming in 6.4% ahead of expectations, and statutory earnings per share of د.إ0.08, in line with analyst appraisals. 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.

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Taking into account the latest results, TECOM Group PJSC's seven analysts currently expect revenues in 2026 to be د.إ3.06b, approximately in line with the last 12 months. Statutory earnings per share are expected to plunge 25% to د.إ0.32 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of د.إ3.00b and earnings per share (EPS) of د.إ0.32 in 2026. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a modest lift to to revenue forecasts.

See our latest analysis for TECOM Group PJSC

Even though revenue forecasts increased, there was no change to the consensus price target of د.إ4.42, suggesting the analysts are focused on earnings as the driver of value creation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values TECOM Group PJSC at د.إ5.30 per share, while the most bearish prices it at د.إ3.75. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the TECOM Group PJSC's past performance and to peers in the same industry. It's pretty clear that there is an expectation that TECOM Group PJSC's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 3.2% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 11% per year. Factoring in the forecast slowdown in growth, it seems obvious that TECOM Group PJSC is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. The consensus price target held steady at د.إ4.42, 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. At Simply Wall St, we have a full range of analyst estimates for TECOM Group PJSC going out to 2028, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 2 warning signs for TECOM Group PJSC 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.