Last week, you might have seen that Riyadh Cables Group Company (TADAWUL:4142) released its quarterly result to the market. The early response was not positive, with shares down 9.3% to ر.س99.80 in the past week. Results look mixed - while revenue fell marginally short of analyst estimates at ر.س2.9b, statutory earnings were in line with expectations, at ر.س7.22 per share. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Taking into account the latest results, Riyadh Cables Group's four analysts currently expect revenues in 2026 to be ر.س11.2b, approximately in line with the last 12 months. Statutory per share are forecast to be ر.س7.64, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of ر.س13.1b and earnings per share (EPS) of ر.س7.93 in 2026. It looks like sentiment has fallen somewhat in the aftermath of these results, with a real cut to revenue estimates and a minor downgrade to earnings per share numbers as well.

Despite the cuts to forecast earnings, there was no real change to the ر.س123 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Riyadh Cables Group at ر.س131 per share, while the most bearish prices it at ر.س107. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the 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. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 16% annually. 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 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. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Riyadh Cables Group going out to 2028, and you can see them free on our platform here.

You can also see whether Riyadh Cables Group is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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.