It's been a good week for Sadot Group Inc. (NASDAQ:SDOT) shareholders, because the company has just released its latest second-quarter results, and the shares gained 6.5% to US$0.47. It was overall a positive result, with revenues beating expectations by 9.6% to hit US$175m. Sadot Group also reported a statutory profit of US$0.05, which was a nice improvement from the loss that the analysts were predicting. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Sadot Group

Taking into account the latest results, Sadot Group's two analysts currently expect revenues in 2024 to be US$641.8m, approximately in line with the last 12 months. Sadot Group is also expected to turn profitable, with statutory earnings of US$0.20 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$609.7m and losses of US$0.02 per share in 2024. The analysts have definitely been lifting their expectations, with the company expected to reach profitability next year - sooner than expected - thanks to the small increase to revenue expectations.

It will come as no surprise to learn that the analysts have increased their price target for Sadot Group 9.4% to US$3.50on 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 1.7% annualised growth rate until the end of 2024 being well below the historical 80% 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 3.1% per year. Factoring in the forecast slowdown in growth, it seems obvious that Sadot 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 now expect Sadot Group to become profitable next year, compared to previous expectations that it would report a loss. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.