Etihad Etisalat Company (TADAWUL:7020) came out with its third-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Etihad Etisalat reported ر.س5.1b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of ر.س1.20 beat expectations, being 2.8% higher than what the analysts expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the current consensus from Etihad Etisalat's nine analysts is for revenues of ر.س22.1b in 2027. This would reflect a solid 8.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to grow 12% to ر.س5.34. Yet prior to the latest earnings, the analysts had been anticipated revenues of ر.س22.2b and earnings per share (EPS) of ر.س5.35 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
See our latest analysis for Etihad Etisalat
It will come as no surprise then, to learn that the consensus price target is largely unchanged at ر.س76.21. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Etihad Etisalat analyst has a price target of ر.س85.00 per share, while the most pessimistic values it at ر.س63.20. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Etihad Etisalat is an easy business to forecast or the the analysts are all using similar assumptions.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 6.9% growth on an annualised basis. That is in line with its 7.0% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.0% annually. It's clear that while Etihad Etisalat's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.
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. 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 in mind, we wouldn't be too quick to come to a conclusion on Etihad Etisalat. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Etihad Etisalat analysts - going out to 2028, and you can see them free on our platform here.
You can also see whether Etihad Etisalat is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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