Yahoo Finance Earnings Update: RHB Bank Berhad Beat Earnings And Now Analysts Have New Forecasts For This Year
As you might know, RHB Bank Berhad (KLSE:RHBBANK) just kicked off its latest first-quarter results with some very strong numbers. RHB Bank Berhad delivered a significant beat with revenue hitting RM2.1b and statutory EPS reaching RM0.17, both beating estimates by more than 10%. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for RHB Bank Berhad
Taking into account the latest results, the current consensus from RHB Bank Berhad's 15 analysts is for revenues of RM8.23b in 2024. This would reflect a notable 10% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 4.6% to RM0.67. In the lead-up to this report, the analysts had been modelling revenues of RM8.10b and earnings per share (EPS) of RM0.66 in 2024. 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.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at RM5.93. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic RHB Bank Berhad analyst has a price target of RM7.25 per share, while the most pessimistic values it at RM5.10. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
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. It's clear from the latest estimates that RHB Bank Berhad's rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 4.2% p.a. 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 7.0% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that RHB Bank Berhad is expected to grow much faster than its industry.
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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at RM5.93, 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 RHB Bank Berhad. Long-term earnings power is much more important than next year's profits. We have forecasts for RHB Bank Berhad 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 1 warning sign with RHB Bank Berhad , and understanding this 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.
