Singapore Exchange Limited (SGX:S68) Just Released Its Half-Yearly Earnings: Here's What Analysts Think
Singapore Exchange Limited (SGX:S68) came out with its half-year results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It was a credible result overall, with revenues of S$592m and statutory earnings per share of S$0.26 both in line with analyst estimates, showing that Singapore Exchange is executing in line with expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for Singapore Exchange
After the latest results, the twelve analysts covering Singapore Exchange are now predicting revenues of S$1.24b in 2024. If met, this would reflect a modest 2.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to reduce 6.6% to S$0.50 in the same period. Before this earnings report, the analysts had been forecasting revenues of S$1.27b and earnings per share (EPS) of S$0.50 in 2024. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.
The consensus has reconfirmed its price target of S$10.10, showing that the analysts don't expect weaker revenue expectations next year to have a material impact on Singapore Exchange's market 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 Singapore Exchange at S$12.40 per share, while the most bearish prices it at S$8.97. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
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. We can infer from the latest estimates that forecasts expect a continuation of Singapore Exchange'shistorical trends, as the 4.8% annualised revenue growth to the end of 2024 is roughly in line with the 5.9% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 10% annually. So it's pretty clear that Singapore Exchange is expected to grow slower than similar companies in the same 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. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Yet - earnings are more important to the intrinsic value of the business. 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.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Singapore Exchange going out to 2026, and you can see them free on our platform here.
We also provide an overview of the Singapore Exchange Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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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.
