Yahoo Finance Bursa Malaysia Berhad (KLSE:BURSA) Just Released Its Yearly Earnings: Here's What Analysts Think
It's been a good week for Bursa Malaysia Berhad (KLSE:BURSA) shareholders, because the company has just released its latest yearly results, and the shares gained 2.3% to RM7.49. Bursa Malaysia Berhad reported RM615m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of RM0.31 beat expectations, being 4.1% higher than what the analysts expected. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for Bursa Malaysia Berhad
After the latest results, the 15 analysts covering Bursa Malaysia Berhad are now predicting revenues of RM649.8m in 2024. If met, this would reflect an okay 5.7% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be RM0.32, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of RM641.8m and earnings per share (EPS) of RM0.31 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
The consensus price target was unchanged at RM7.39, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Bursa Malaysia Berhad at RM8.50 per share, while the most bearish prices it at RM5.50. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
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. The analysts are definitely expecting Bursa Malaysia Berhad's growth to accelerate, with the forecast 5.7% annualised growth to the end of 2024 ranking favourably alongside historical growth of 3.2% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 10% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Bursa Malaysia Berhad is expected to grow slower than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Bursa Malaysia Berhad's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Bursa Malaysia Berhad's revenue is expected to perform worse than the wider industry. The consensus price target held steady at RM7.39, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Bursa Malaysia Berhad. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Bursa Malaysia Berhad analysts - going out to 2026, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Bursa Malaysia Berhad , and understanding them should be part of your investment process.
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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.
