Yahoo Finance Wilmar International Limited Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next
Investors in Wilmar International Limited (SGX:F34) had a good week, as its shares rose 4.6% to close at S$3.39 following the release of its yearly results. Revenues US$67b disappointed slightly, at2.4% below what the analysts had predicted. Profits were a relative bright spot, with statutory per-share earnings of US$0.24 coming in 15% above what was anticipated. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for Wilmar International
After the latest results, the 13 analysts covering Wilmar International are now predicting revenues of US$71.0b in 2024. If met, this would reflect a reasonable 5.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 12% to US$0.27. Before this earnings report, the analysts had been forecasting revenues of US$70.8b and earnings per share (EPS) of US$0.28 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.
The consensus price target held steady at S$3.82, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. The most optimistic Wilmar International analyst has a price target of S$4.62 per share, while the most pessimistic values it at S$2.31. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Wilmar International's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 5.7% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 2.2% per year. So it's pretty clear that, while Wilmar International's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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 S$3.82, with the latest estimates not enough to have an impact on their price targets.
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 Wilmar International going out to 2026, and you can see them free on our platform here..
Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Wilmar International (1 shouldn't be ignored) 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.
