Shareholders might have noticed that Sadot Group Inc. (NASDAQ:SDOT) filed its quarterly result this time last week. The early response was not positive, with shares down 6.7% to US$3.49 in the past week. Statutory earnings per share disappointed, coming in -62% short of expectations, at US$0.23. Fortunately revenue performance was a lot stronger at US$202m arriving 16% ahead of predictions. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the consensus forecast from Sadot Group's twin analysts is for revenues of US$875.9m in 2025. This reflects a sizeable 34% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 753% to US$2.40. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$703.8m and earnings per share (EPS) of US$2.15 in 2025. There has definitely been an improvement in perception after these results, with the analysts noticeably increasing both their earnings and revenue estimates.
It will come as no surprise to learn that the analysts have increased their price target for Sadot Group 9.4% to US$35.00on the back of these upgrades.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Sadot Group's revenue growth is expected to slow, with the forecast 26% annualised growth rate until the end of 2025 being well below the historical 75% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 2.8% annually. So it's pretty clear that, while Sadot Group's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Sadot Group following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
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. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.
It is also worth noting that we have found 4 warning signs for Sadot Group that you need to take into consideration.
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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.
