One thing we could say about the analysts on Southern Province Cement Company (TADAWUL:3050) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.

Following the latest downgrade, the current consensus, from the three analysts covering Southern Province Cement, is for revenues of ر.س736m in 2026, which would reflect a definite 13% reduction in Southern Province Cement's sales over the past 12 months. Losses are predicted to fall substantially, shrinking 55% to ر.س0.22 per share. Previously, the analysts had been modelling revenues of ر.س846m and earnings per share (EPS) of ر.س0.30 in 2026. So we can see that the consensus has become notably more bearish on Southern Province Cement's outlook with these numbers, making a measurable cut to this year's revenue estimates. Furthermore, they expect the business to be loss-making this year, compared to their previous forecasts of a profit.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Southern Province Cement's past performance and to peers in the same industry. Over the past five years, revenues have declined around 13% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 18% decline in revenue until the end of 2026. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 7.1% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect Southern Province Cement to suffer worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts are expecting Southern Province Cement to become unprofitable this year. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Given the serious cut to this year's outlook, it's clear that analysts have turned more bearish on Southern Province Cement, and we wouldn't blame shareholders for feeling a little more cautious themselves.

After a downgrade like this one, it's pretty clear that previous forecasts were too optimistic. Worse, it's possible that the forecast future income could struggle to cover Southern Province Cement'sdividend payments. For more information, you can click here to learn more about our dividend analysis and the 1 potential warning sign we've identified.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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.