Emaar Development PJSC Beat Revenue Forecasts By 17%: Here's What Analysts Are Forecasting Next

As you might know, Emaar Development PJSC (DFM:EMAARDEV) just kicked off its latest third-quarter results with some very strong numbers. It was a decent earnings report, with revenues and statutory earnings per share (EPS) both performing well. Revenues were 17% higher than the analysts had forecast, at د.إ8.8b, while EPS of د.إ0.88 beat analyst models by 12%. 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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After the latest results, the ten analysts covering Emaar Development PJSC are now predicting revenues of د.إ36.6b in 2027. If met, this would reflect a notable 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 7.7% to د.إ3.60. Yet prior to the latest earnings, the analysts had been anticipated revenues of د.إ36.6b and earnings per share (EPS) of د.إ3.87 in 2027. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

See our latest analysis for Emaar Development PJSC

It might be a surprise to learn that the consensus price target was broadly unchanged at د.إ16.99, 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. The most optimistic Emaar Development PJSC analyst has a price target of د.إ22.00 per share, while the most pessimistic values it at د.إ13.50. 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.

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 Emaar Development PJSC's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 11% growth on an annualised basis. This is compared to a historical growth rate of 21% over the past five years. Compare this to the 11 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 10% per year. So it's pretty clear that, while Emaar Development PJSC's revenue growth is expected to slow, it's expected to grow roughly in line with the 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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 Emaar Development PJSC going out to 2028, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Emaar Development PJSC you should be aware of.

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