Public Bank Berhad (KLSE:PBBANK) Just Released Its First-Quarter Results And Analysts Are Updating Their Estimates

As you might know, Public Bank Berhad (KLSE:PBBANK) recently reported its quarterly numbers. Revenues of RM3.4b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at RM0.085, missing estimates by 2.0%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Public Bank Berhad after the latest results.

View our latest analysis for Public Bank Berhad

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Taking into account the latest results, the current consensus from Public Bank Berhad's 17 analysts is for revenues of RM13.8b in 2024. This would reflect an okay 6.1% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 5.4% to RM0.36. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM13.8b and earnings per share (EPS) of RM0.36 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of RM4.74, suggesting that the company has met expectations in its recent result. 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. Currently, the most bullish analyst values Public Bank Berhad at RM5.30 per share, while the most bearish prices it at RM3.90. This is a very narrow spread of estimates, implying either that Public Bank Berhad is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Public Bank Berhad's growth to accelerate, with the forecast 8.2% annualised growth to the end of 2024 ranking favourably alongside historical growth of 5.5% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 7.2% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Public Bank Berhad is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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. At Simply Wall St, we have a full range of analyst estimates for Public Bank Berhad going out to 2026, and you can see them free on our platform here..

You still need to take note of risks, for example - Public Bank Berhad has 1 warning sign 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.