Yahoo Finance Lee Swee Kiat Group Berhad Recorded A 9.4% Miss On Revenue: Analysts Are Revisiting Their Models
Lee Swee Kiat Group Berhad (KLSE:LEESK) just released its latest full-year report and things are not looking great. Lee Swee Kiat Group Berhad missed analyst forecasts, with revenues of RM128m and statutory earnings per share (EPS) of RM0.085, falling short by 9.4% and 2.0% respectively. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for Lee Swee Kiat Group Berhad
Following the latest results, Lee Swee Kiat Group Berhad's three analysts are now forecasting revenues of RM180.2m in 2024. This would be a huge 41% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 13% to RM0.096. In the lead-up to this report, the analysts had been modelling revenues of RM171.9m and earnings per share (EPS) of RM0.10 in 2024. Overall it looks as though the analysts were a bit mixed on the latest results. Although there was a a huge to revenue, the consensus also made a minor downgrade to its earnings per share forecasts.
The analysts also upgraded Lee Swee Kiat Group Berhad's price target 6.3% to RM1.29, implying that the higher revenue expected to generate enough value to offset the forecast decline in earnings. 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 Lee Swee Kiat Group Berhad analyst has a price target of RM1.42 per share, while the most pessimistic values it at RM1.07. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
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 Lee Swee Kiat Group Berhad's rate of growth is expected to accelerate meaningfully, with the forecast 41% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 6.6% 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 12% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Lee Swee Kiat Group Berhad to grow faster than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Lee Swee Kiat Group Berhad. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Lee Swee Kiat Group Berhad going out to 2026, and you can see them free on our platform here..
Before you take the next step you should know about the 2 warning signs for Lee Swee Kiat Group Berhad that we have uncovered.
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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.
