The second-quarter results for Bezeq The Israel Telecommunication Corp. Ltd (TLV:BEZQ) were released last week, making it a good time to revisit its performance. It looks like a credible result overall - although revenues of ₪2.2b were what the analysts expected, Bezeq The Israel Telecommunication surprised by delivering a (statutory) profit of ₪0.11 per share, an impressive 30% above what was forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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 current consensus from Bezeq The Israel Telecommunication's three analysts is for revenues of ₪8.95b in 2026. This would reflect an okay 3.3% increase on its revenue over the past 12 months. Statutory earnings per share are expected to reduce 7.2% to ₪0.41 in the same period. In the lead-up to this report, the analysts had been modelling revenues of ₪8.77b and earnings per share (EPS) of ₪0.41 in 2026. There doesn't appear to have been a major change in sentiment following the results, other than the small lift in revenue estimates.
Check out our latest analysis for Bezeq The Israel Telecommunication
Even though revenue forecasts increased, there was no change to the consensus price target of ₪8.35, suggesting the analysts are focused on earnings as the driver of value creation. 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 Bezeq The Israel Telecommunication at ₪8.80 per share, while the most bearish prices it at ₪7.80. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Bezeq The Israel Telecommunication is an easy business to forecast or the the analysts are all using similar assumptions.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Bezeq The Israel Telecommunication's past performance and to peers in the same industry. One thing stands out from these estimates, which is that Bezeq The Israel Telecommunication is forecast to grow faster in the future than it has in the past, with revenues expected to display 6.8% annualised growth until the end of 2026. If achieved, this would be a much better result than the 0.4% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 3.8% annually. Not only are Bezeq The Israel Telecommunication's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at ₪8.35, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Bezeq The Israel Telecommunication going out to 2028, and you can see them free on our platform here..
However, before you get too enthused, we've discovered 2 warning signs for Bezeq The Israel Telecommunication that you should be aware of.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.