Yahoo Finance Results: Hong Leong Bank Berhad Exceeded Expectations And The Consensus Has Updated Its Estimates
As you might know, Hong Leong Bank Berhad (KLSE:HLBANK) recently reported its second-quarter numbers. Revenues were RM1.5b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of RM0.53 were also better than expected, beating analyst predictions by 12%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Hong Leong Bank Berhad after the latest results.
View our latest analysis for Hong Leong Bank Berhad
After the latest results, the 15 analysts covering Hong Leong Bank Berhad are now predicting revenues of RM5.89b in 2024. If met, this would reflect an okay 6.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 2.1% to RM1.95. In the lead-up to this report, the analysts had been modelling revenues of RM5.91b and earnings per share (EPS) of RM1.95 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.
The analysts reconfirmed their price target of RM22.82, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Hong Leong Bank Berhad at RM26.30 per share, while the most bearish prices it at RM18.30. 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.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Hong Leong Bank Berhad's past performance and to peers in the same industry. It's clear from the latest estimates that Hong Leong Bank Berhad's rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 4.8% 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 Hong Leong 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. 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Hong Leong Bank Berhad going out to 2026, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 1 warning sign for Hong Leong Bank Berhad 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.
