Yahoo Finance Earnings Report: Kim Loong Resources Berhad Missed Revenue Estimates By 5.6%
As you might know, Kim Loong Resources Berhad (KLSE:KMLOONG) last week released its latest yearly, and things did not turn out so great for shareholders. Kim Loong Resources Berhad missed analyst forecasts, with revenues of RM1.5b and statutory earnings per share (EPS) of RM0.15, falling short by 5.6% and 4.4% respectively. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Check out our latest analysis for Kim Loong Resources Berhad
Taking into account the latest results, the current consensus from Kim Loong Resources Berhad's four analysts is for revenues of RM1.69b in 2025. This would reflect a decent 10% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be RM0.15, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM1.65b and earnings per share (EPS) of RM0.15 in 2025. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a small lift in to revenue forecasts.
The analysts increased their price target 5.4% to RM2.35, perhaps signalling that higher revenues are a strong leading indicator for Kim Loong Resources Berhad's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Kim Loong Resources Berhad, with the most bullish analyst valuing it at RM2.90 and the most bearish at RM1.95 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Kim Loong Resources Berhad's revenue growth is expected to slow, with the forecast 10% annualised growth rate until the end of 2025 being well below the historical 21% 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) 4.3% per year. So it's pretty clear that, while Kim Loong Resources Berhad'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 to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. 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.
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 estimates - from multiple Kim Loong Resources Berhad analysts - going out to 2027, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 1 warning sign for Kim Loong Resources Berhad you should know about.
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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.
