Scientex Berhad Just Beat Revenue Estimates By 7.4%
It's been a good week for Scientex Berhad (KLSE:SCIENTX) shareholders, because the company has just released its latest first-quarter results, and the shares gained 8.1% to RM4.13. Results overall were respectable, with statutory earnings of RM0.28 per share roughly in line with what the analysts had forecast. Revenues of RM1.1b came in 7.4% ahead of analyst predictions. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Check out our latest analysis for Scientex Berhad
Following the latest results, Scientex Berhad's seven analysts are now forecasting revenues of RM4.54b in 2024. This would be a modest 6.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 9.7% to RM0.36. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM4.54b and earnings per share (EPS) of RM0.35 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 RM4.12, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Scientex Berhad analyst has a price target of RM4.58 per share, while the most pessimistic values it at RM3.68. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
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. It's clear from the latest estimates that Scientex Berhad's rate of growth is expected to accelerate meaningfully, with the forecast 8.6% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 6.6% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.2% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Scientex Berhad to grow faster than the wider 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. The consensus price target held steady at RM4.12, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Scientex Berhad. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Scientex Berhad analysts - 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 Scientex 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.
