Penguin International Limited Full-Year Results Just Came Out: Here's What Analysts Are Forecasting For Next Year
Last week, you might have seen that Penguin International Limited (SGX:BTM) released its yearly result to the market. The early response was not positive, with shares down 5.6% to S$0.68 in the past week. Penguin International reported S$136m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of S$0.088 beat expectations, being 3.4% higher than what analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what analysts' statutory forecasts suggest is in store for next year.
See our latest analysis for Penguin International
Taking into account the latest results, the latest consensus from Penguin International's three analysts is for revenues of S$163.5m in 2020, which would reflect a meaningful 20% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to swell 18% to S$0.10. In the lead-up to this report, analysts had been modelling revenues of S$154.0m and earnings per share (EPS) of S$0.11 in 2020. So it's pretty clear consensus is mixed on Penguin International after the latest results; while analysts lifted revenue numbers, they also administered a minor downgrade to per-share earnings expectations.
There's been no major changes to an analyst price target of S$0.85, suggesting that the impact of higher forecast sales and lower earnings won't result in a meaningful change to the business' valuation. The consensus price target just an average of individual analyst targets, so - considering that the price target changed, it would be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Penguin International, with the most bullish analyst valuing it at S$0.88 and the most bearish at S$0.82 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that analysts have a clear view on its prospects.
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. For example, we noticed that Penguin International's rate of growth is expected to accelerate meaningfully, with revenues forecast to grow at 20%, well above its historical decline of 4.7% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the market are forecast to see their revenue grow 5.9% per year. Although Penguin International's revenues are expected to improve, it seems that analysts are also expecting it to grow faster than the wider market.
The Bottom Line
The most important thing to take away is that analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider market. The consensus price target held steady at S$0.85, with the latest estimates not enough to have an impact on analysts' estimated valuations.
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 Penguin International going out to 2022, and you can see them free on our platform here..
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
