Yahoo Finance Here's What Analysts Are Forecasting For Genting Plantations Berhad (KLSE:GENP) After Its Yearly Results
Last week, you might have seen that Genting Plantations Berhad (KLSE:GENP) released its annual result to the market. The early response was not positive, with shares down 2.2% to RM6.09 in the past week. It was a workmanlike result, with revenues of RM3.0b coming in 2.2% ahead of expectations, and statutory earnings per share of RM0.28, in line with analyst appraisals. 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 Genting Plantations Berhad
Taking into account the latest results, Genting Plantations Berhad's twelve analysts currently expect revenues in 2024 to be RM2.99b, approximately in line with the last 12 months. Statutory earnings per share are predicted to climb 18% to RM0.33. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM2.96b and earnings per share (EPS) of RM0.34 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.
It might be a surprise to learn that the consensus price target was broadly unchanged at RM6.32, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Genting Plantations Berhad analyst has a price target of RM8.40 per share, while the most pessimistic values it at RM5.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Genting Plantations Berhad shareholders.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Genting Plantations Berhad's revenue growth is expected to slow, with the forecast 0.9% annualised growth rate until the end of 2024 being well below the historical 11% 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 4.7% per year. Factoring in the forecast slowdown in growth, it seems obvious that Genting Plantations Berhad is also expected to grow slower than other industry participants.
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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Genting Plantations Berhad's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Genting Plantations Berhad analysts - going out to 2026, and you can see them free on our platform here.
You still need to take note of risks, for example - Genting Plantations Berhad has 2 warning signs we think you should be aware of.
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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.
