Yahoo Finance MISC Berhad Just Beat Revenue By 36%: Here's What Analysts Think Will Happen Next
Last week saw the newest second-quarter earnings release from MISC Berhad (KLSE:MISC), an important milestone in the company's journey to build a stronger business. Sales of RM3.2b came in a notable 36% ahead of expectations, while statutory earnings of RM0.41 were in line with what the analysts had been forecasting. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Check out our latest analysis for MISC Berhad
Taking into account the latest results, the current consensus, from the 13 analysts covering MISC Berhad, is for revenues of RM11.7b in 2022, which would reflect an uncomfortable 8.8% reduction in MISC Berhad's sales over the past 12 months. Statutory earnings per share are expected to reduce 3.7% to RM0.35 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM11.6b and earnings per share (EPS) of RM0.35 in 2022. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
There were no changes to revenue or earnings estimates or the price target of RM7.55, suggesting that the company has met expectations in its recent result. 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 MISC Berhad, with the most bullish analyst valuing it at RM8.30 and the most bearish at RM6.95 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the MISC Berhad's past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 17% by the end of 2022. This indicates a significant reduction from annual growth of 4.6% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 16% per year.
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. They also made no major changes to their revenue forecasts for next year, with sales expected to grow in line with the wider industry. The consensus price target held steady at RM7.55, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for MISC Berhad going out to 2024, and you can see them free on our platform here..
It is also worth noting that we have found 2 warning signs for MISC Berhad that you need to take into consideration.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
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