Last week saw the newest quarterly earnings release from Saudi Telecom Company (TADAWUL:7010), an important milestone in the company's journey to build a stronger business. It looks like a credible result overall - although revenues of ر.س20b were in line with what the analysts predicted, Saudi Telecom surprised by delivering a statutory profit of ر.س0.74 per share, a notable 14% above expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Taking into account the latest results, the current consensus from Saudi Telecom's 13 analysts is for revenues of ر.س80.6b in 2026. This would reflect an okay 2.6% increase on its revenue over the past 12 months. Statutory earnings per share are expected to dip 7.2% to ر.س2.78 in the same period. In the lead-up to this report, the analysts had been modelling revenues of ر.س81.4b and earnings per share (EPS) of ر.س2.80 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of ر.س47.81, showing that the business is executing well and in line with expectations. 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 Saudi Telecom at ر.س55.00 per share, while the most bearish prices it at ر.س41.10. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Saudi Telecom is an easy business to forecast or the the analysts are all using similar assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Saudi Telecom's revenue growth is expected to slow, with the forecast 3.5% annualised growth rate until the end of 2026 being well below the historical 5.3% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.7% annually. So it's pretty clear that, while Saudi Telecom's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Saudi Telecom going out to 2028, and you can see them free on our platform here.

You still need to take note of risks, for example - Saudi Telecom has 1 warning sign we think you should be aware of.

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.