Results: Emirates Telecommunications Group Company PJSC Exceeded Expectations And The Consensus Has Updated Its Estimates
The third-quarter results for Emirates Telecommunications Group Company PJSC (ADX:ETISALAT) were released last week, making it a good time to revisit its performance. It looks like a credible result overall - although revenues of د.إ19b were what the analysts expected, Emirates Telecommunications Group Company PJSC surprised by delivering a (statutory) profit of د.إ1.29 per share, an impressive 59% above what was forecast. 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 most recent consensus for Emirates Telecommunications Group Company PJSC from eleven analysts is for revenues of د.إ82.3b in 2027. If met, it would imply a satisfactory 5.4% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to crater 32% to د.إ1.52 in the same period. Before this earnings report, the analysts had been forecasting revenues of د.إ82.6b and earnings per share (EPS) of د.إ1.51 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
See our latest analysis for Emirates Telecommunications Group Company PJSC
There were no changes to revenue or earnings estimates or the price target of د.إ23.26, suggesting that the company has met expectations in its recent result. 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 Emirates Telecommunications Group Company PJSC at د.إ28.00 per share, while the most bearish prices it at د.إ19.30. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Emirates Telecommunications Group Company PJSC shareholders.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Emirates Telecommunications Group Company PJSC's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 4.3% growth on an annualised basis. This is compared to a historical growth rate of 8.7% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.0% annually. So it's pretty clear that, while Emirates Telecommunications Group Company PJSC's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.
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. 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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Emirates Telecommunications Group Company PJSC going out to 2028, and you can see them free on our platform here.
You still need to take note of risks, for example - Emirates Telecommunications Group Company PJSC has 2 warning signs (and 1 which can't be ignored) we think you should know about.
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