Almarai Company Beat Revenue Forecasts By 5.8%: Here's What Analysts Are Forecasting Next

It's been a good week for Almarai Company (TADAWUL:2280) shareholders, because the company has just released its latest quarterly results, and the shares gained 5.8% to ر.س44.44. It was a workmanlike result, with revenues of ر.س6.2b coming in 5.8% ahead of expectations, and statutory earnings per share of ر.س0.62, in line with analyst appraisals. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the consensus forecast from Almarai's 13 analysts is for revenues of ر.س25.5b in 2027. This reflects an okay 7.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to expand 12% to ر.س2.75. In the lead-up to this report, the analysts had been modelling revenues of ر.س25.4b and earnings per share (EPS) of ر.س2.78 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

See our latest analysis for Almarai

The analysts reconfirmed their price target of ر.س56.40, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Almarai analyst has a price target of ر.س68.00 per share, while the most pessimistic values it at ر.س50.00. 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.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Almarai'shistorical trends, as the 6.0% annualised revenue growth to the end of 2027 is roughly in line with the 7.2% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.9% annually. It's clear that while Almarai's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Almarai. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Almarai going out to 2028, and you can see them free on our platform here..

Even so, be aware that Almarai is showing 1 warning sign in our investment analysis , you should know about...

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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.