It's shaping up to be a tough period for Saudia Dairy & Foodstuff Company (TADAWUL:2270), which a week ago released some disappointing yearly results that could have a notable impact on how the market views the stock. Results look to have been somewhat negative - revenue fell 4.7% short of analyst estimates at ر.س3.0b, and statutory earnings of ر.س14.92 per share missed forecasts by 4.8%. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

After the latest results, the four analysts covering Saudia Dairy & Foodstuff are now predicting revenues of ر.س3.33b in 2026. If met, this would reflect a notable 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to drop 16% to ر.س12.54 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of ر.س3.35b and earnings per share (EPS) of ر.س14.30 in 2026. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.

The consensus price target held steady at ر.س293, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. There are some variant perceptions on Saudia Dairy & Foodstuff, with the most bullish analyst valuing it at ر.س317 and the most bearish at ر.س250 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. The analysts are definitely expecting Saudia Dairy & Foodstuff's growth to accelerate, with the forecast 11% annualised growth to the end of 2026 ranking favourably alongside historical growth of 9.2% per annum 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 5.5% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Saudia Dairy & Foodstuff to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Saudia Dairy & Foodstuff. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Saudia Dairy & Foodstuff analysts - going out to 2028, and you can see them free on our platform here.

Even so, be aware that Saudia Dairy & Foodstuff is showing 1 warning sign in our investment analysis , you should know about...

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.