Yahoo Finance Lotte Chemical Titan Holding Berhad (KLSE:LCTITAN) Analysts Are Cutting Their Estimates: Here's What You Need To Know
It's been a mediocre week for Lotte Chemical Titan Holding Berhad (KLSE:LCTITAN) shareholders, with the stock dropping 19% to RM1.20 in the week since its latest yearly results. Revenues of RM7.6b arrived in line with expectations, although statutory losses per share were RM0.34, an impressive 25% smaller than what broker models predicted. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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 Lotte Chemical Titan Holding Berhad
Following the latest results, Lotte Chemical Titan Holding Berhad's four analysts are now forecasting revenues of RM7.93b in 2024. This would be a modest 3.7% improvement in revenue compared to the last 12 months. Losses are expected to hold steady at around RM0.34. Before this latest report, the consensus had been expecting revenues of RM8.55b and RM0.30 per share in losses. While this year's revenue estimates dropped there was also a considerable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
There was no major change to the consensus price target of RM1.08, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts. 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 Lotte Chemical Titan Holding Berhad analyst has a price target of RM1.39 per share, while the most pessimistic values it at RM0.93. 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.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Lotte Chemical Titan Holding Berhad's growth to accelerate, with the forecast 3.7% annualised growth to the end of 2024 ranking favourably alongside historical growth of 1.4% 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 5.5% per year. So it's clear that despite the acceleration in growth, Lotte Chemical Titan Holding Berhad is expected to grow meaningfully slower than the industry average.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at RM1.08, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Lotte Chemical Titan Holding Berhad analysts - going out to 2026, and you can see them free on our platform here.
Even so, be aware that Lotte Chemical Titan Holding Berhad is showing 1 warning sign in our investment analysis , you should know about...
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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.
