Today is shaping up negative for Riyadh Cables Group Company (TADAWUL:4142) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the latest downgrade, Riyadh Cables Group's four analysts currently expect revenues in 2026 to be ر.س11b, approximately in line with the last 12 months. Statutory earnings per share are forecast to be ر.س7.64, approximately in line with the last 12 months. Before this latest update, the analysts had been forecasting revenues of ر.س13b and earnings per share (EPS) of ر.س7.93 in 2026. It looks like analyst sentiment has fallen somewhat in this update, with a measurable cut to revenue estimates and a small dip in earnings per share numbers as well.

Analysts made no major changes to their price target of ر.س123, suggesting the downgrades are not expected to have a long-term impact on Riyadh Cables Group's valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Riyadh Cables Group's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Riyadh Cables Group's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 0.4% growth on an annualised basis. This is compared to a historical growth rate of 15% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 16% per year. Factoring in the forecast slowdown in growth, it seems obvious that Riyadh Cables Group is also expected to grow slower than other industry participants.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Riyadh Cables Group. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Riyadh Cables Group after today.

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 Riyadh Cables Group going out to 2028, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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.