Makkah Construction and Development Company (TADAWUL:4100) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the upgrade, the most recent consensus for Makkah Construction and Development from its solo analyst is for revenues of ر.س1.3b in 2026 which, if met, would be a solid 20% increase on its sales over the past 12 months. Statutory earnings per share are presumed to accumulate 6.5% to ر.س2.59. Previously, the analyst had been modelling revenues of ر.س1.1b and earnings per share (EPS) of ر.س2.37 in 2026. The most recent forecasts are noticeably more optimistic, with a nice gain to revenue estimates and a lift to earnings per share as well.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analyst is definitely expecting Makkah Construction and Development's growth to accelerate, with the forecast 43% annualised growth to the end of 2026 ranking favourably alongside historical growth of 31% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Makkah Construction and Development to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Makkah Construction and Development.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for Makkah Construction and Development going out as far as 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.