• Wed. Nov 30th, 2022

Industry analysts just improved their company’s Saudia Dairy & Foodstuff (TADAWUL:2270) revenue forecast by 15%

ByStephanie M. Akbar

Oct 29, 2022


Saudia Dairy & Foodstuff Company (TADAWUL: 2270) shareholders will have a reason to smile today, with analysts making substantial improvements to this year’s statutory forecast. The revenue forecast for this year has seen a facelift, with analysts now much more optimistic about its sales pipeline. The market may also value blue skies, with the share price gaining 16% to ر.س230 in the past 7 days. It will be interesting to see if today’s upgrade is enough to propel the stock even higher.

Following the upgrade, the latest consensus from Saudia Dairy & Foodstuff’s four analysts is for revenues of £2.7bn in 2023, which would reflect a significant 11% improvement in sales over the past 12 months. . Earnings per share are expected to rise 19% to £9.52. Prior to this latest update, analysts were forecasting revenue of ر.س2.4 billion and earnings per share (EPS) of ر.س9.05 in 2023. Sentiment certainly seems to have improved lately , with a nice increase in revenue and a slight increase in earnings per share estimates.

Check opportunities and risks within the South African food industry.

SASE:2270 Earnings and Revenue Growth October 29, 2022

Although analysts have raised their earnings estimates, the consensus price target of ر.س 202 has not changed, suggesting that the expected performance has no long-term impact on the stock’s valuation. society. This is not the only conclusion we can draw from this data, however, as some investors also like to take into account the discrepancy in estimates when evaluating analyst price targets. Saudia Dairy & Foodstuff’s most optimistic analyst has a price target of ر.س260 per share, while the most pessimistic puts it at ر.163. This shows that there is still some diversity in the estimates, but analysts don’t seem to be entirely split on the stock as if it were a pass or fail situation.

One way to get more context on these forecasts is to examine how they compare both to past performance and to the performance of other companies in the same industry. Analysts certainly expect Saudia Dairy & Foodstuff’s growth to accelerate, with projected annualized growth of 23% through the end of 2023 ranking favorably alongside historic growth of 6.6% per year during of the last five years. In contrast, our data suggests that other companies (with analyst coverage) in a similar industry are expected to grow revenue by 6.8% annually. Taking into account the expected revenue acceleration, it’s pretty clear that Saudia Dairy & Foodstuff is expected to grow much faster than its industry.

The essential

The biggest lesson for us from these new estimates is that analysts have raised their earnings per share estimates, with an improvement in earnings power expected for this year. They also updated their revenue estimates for this year and sales are expected to grow faster than the broader market. Given that analysts seem to be expecting a substantial improvement in the sales pipeline, now might be a good time to re-examine Saudia Dairy & Foodstuff.

Even so, the longer-term trajectory of the company is far more important to the creation of shareholder value. At Simply Wall St, we have a full range of analyst estimates for Saudia Dairy & Foodstuff going through 2025, and you can see them for free on our platform here..

Of course, see the management of the company invest large sums of money in a stock can be just as useful as knowing if analysts are updating their estimates. So you can also search this free list of stocks that insiders buy.

Valuation is complex, but we help make it simple.

Find out if Saudia Dairy and Food Products is potentially overvalued or undervalued by viewing our full analysis, which includes fair value estimates, risks and warnings, dividends, insider trading and financial health.

See the free analysis

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

Source link