Yahoo Finance Yinson Holdings Berhad Just Beat Revenue By 38%: Here's What Analysts Think Will Happen Next
Yinson Holdings Berhad (KLSE:YINSON) just released its yearly report and things are looking bullish. Statutory revenue of RM12b and earnings of RM0.28 both blasted past expectations, beating expectations by 38% and 21%, respectively, ahead of expectations. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for Yinson Holdings Berhad
Taking into account the latest results, the nine analysts covering Yinson Holdings Berhad provided consensus estimates of RM6.90b revenue in 2025, which would reflect a stressful 41% decline over the past 12 months. Statutory earnings per share are forecast to decrease 7.1% to RM0.26 in the same period. In the lead-up to this report, the analysts had been modelling revenues of RM7.05b and earnings per share (EPS) of RM0.27 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.
Despite the cuts to forecast earnings, there was no real change to the RM3.65 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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 Yinson Holdings Berhad at RM4.78 per share, while the most bearish prices it at RM2.96. 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.
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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 41% by the end of 2025. This indicates a significant reduction from annual growth of 37% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 6.8% annually for the foreseeable future. The forecasts do look bearish for Yinson Holdings Berhad, since they're expecting it to shrink faster than the industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Yinson Holdings Berhad. Unfortunately they also cut their revenue estimates for next year. Forecasts imply the business' revenue is expected to perform worse than the wider industry. That said, earnings per share are more important for creating value for shareholders. The consensus price target held steady at RM3.65, 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. We have forecasts for Yinson Holdings Berhad going out to 2027, and you can see them free on our platform here.
You still need to take note of risks, for example - Yinson Holdings Berhad has 2 warning signs 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.
