SABIC Agri-Nutrients Company (TADAWUL:2020) just released its latest third-quarter results and things are looking bullish. Statutory revenue of ر.س3.2b and earnings of ر.س1.02 both blasted past expectations, beating expectations by 50% and 175%, respectively, ahead of expectations. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on SABIC Agri-Nutrients after the latest results.
Taking into account the latest results, the most recent consensus for SABIC Agri-Nutrients from ten analysts is for revenues of ر.س13.3b in 2027. If met, it would imply a solid 14% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 53% to ر.س9.90. Yet prior to the latest earnings, the analysts had been anticipated revenues of ر.س13.5b and earnings per share (EPS) of ر.س10.32 in 2027. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.
View our latest analysis for SABIC Agri-Nutrients
The consensus price target held steady at ر.س136, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. There are some variant perceptions on SABIC Agri-Nutrients, with the most bullish analyst valuing it at ر.س158 and the most bearish at ر.س86.54 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the SABIC Agri-Nutrients' past performance and to peers in the same industry. One thing stands out from these estimates, which is that SABIC Agri-Nutrients is forecast to grow faster in the future than it has in the past, with revenues expected to display 11% annualised growth until the end of 2027. If achieved, this would be a much better result than the 2.1% 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 4.7% annually. Not only are SABIC Agri-Nutrients' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for SABIC Agri-Nutrients. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for SABIC Agri-Nutrients 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 1 warning sign for SABIC Agri-Nutrients you should know about.
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