The second-quarter results for Al Hammadi Holding Company (TADAWUL:4007) were released last week, making it a good time to revisit its performance. Revenues came in 2.7% below expectations, at ر.س322m. Statutory earnings per share were relatively better off, with a per-share profit of ر.س1.51 being roughly in line with analyst estimates. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Taking into account the latest results, the most recent consensus for Al Hammadi Holding from five analysts is for revenues of ر.س1.39b in 2026. If met, it would imply a meaningful 9.2% increase on its revenue over the past 12 months. Per-share earnings are expected to expand 13% to ر.س1.65. Before this earnings report, the analysts had been forecasting revenues of ر.س1.32b and earnings per share (EPS) of ر.س1.66 in 2026. There doesn't appear to have been a major change in sentiment following the results, other than the slight bump in revenue estimates.

Even though revenue forecasts increased, there was no change to the consensus price target of ر.س35.62, suggesting the analysts are focused on earnings as the driver of value creation. 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. The most optimistic Al Hammadi Holding analyst has a price target of ر.س47.30 per share, while the most pessimistic values it at ر.س30.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Al Hammadi Holding's rate of growth is expected to accelerate meaningfully, with the forecast 19% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 5.8% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 11% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Al Hammadi Holding is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous 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 ر.س35.62, 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. We have estimates - from multiple Al Hammadi Holding analysts - going out to 2028, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Al Hammadi Holding .

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.