It's been a sad week for Sadot Group Inc. (NASDAQ:SDOT), who've watched their investment drop 10% to US$3.36 in the week since the company reported its third-quarter result. Results were mixed, with revenues of US$202m exceeding expectations, even as statutory earnings per share (EPS) fell badly short. Earnings were US$0.23 per share, -62% short of analyst expectations. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Sadot Group

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 bounce 113% to US$0.60. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$703.8m and earnings per share (EPS) of US$2.40 in 2025. Although revenues are expected to increase meaningfully, the analysts have acknowledged the cost of growth, given the pretty serious reduction to EPS estimates following the latest report.

The analysts also upgraded Sadot Group's price target 9.4% to US$35.00, implying that the higher revenue expected to generate enough value to offset the forecast decline in earnings.

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. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 2.7% per year. Even after the forecast slowdown in growth, it seems obvious that Sadot Group is also expected to grow faster than the wider industry.

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. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Sadot Group. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Before you take the next step you should know about the 4 warning signs for Sadot Group that we have uncovered.

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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.