Revenue Beat: Leejam Sports Company Exceeded Revenue Forecasts By 7.6% And Analysts Are Updating Their Estimates
Shareholders of Leejam Sports Company (TADAWUL:1830) will be pleased this week, given that the stock price is up 13% to ر.س79.70 following its latest quarterly results. Results overall were respectable, with statutory earnings of ر.س5.85 per share roughly in line with what the analysts had forecast. Revenues of ر.س411m came in 7.6% ahead of analyst predictions. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Following last week's earnings report, Leejam Sports' seven analysts are forecasting 2026 revenues to be ر.س1.67b, approximately in line with the last 12 months. Statutory earnings per share are predicted to increase 3.0% to ر.س5.39. Before this earnings report, the analysts had been forecasting revenues of ر.س1.66b and earnings per share (EPS) of ر.س5.24 in 2026. So the consensus seems to have become somewhat more optimistic on Leejam Sports' earnings potential following these results.
View our latest analysis for Leejam Sports
There's been no major changes to the consensus price target of ر.س96.23, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's 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. Currently, the most bullish analyst values Leejam Sports at ر.س120 per share, while the most bearish prices it at ر.س72.40. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Leejam Sports' revenue growth is expected to slow, with the forecast 2.0% annualised growth rate until the end of 2026 being well below the historical 14% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.1% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Leejam Sports.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Leejam Sports following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Leejam Sports analysts - going out to 2028, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 3 warning signs for Leejam Sports 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.