Glomac Berhad Just Recorded A 45% EPS Beat: Here's What Analysts Are Forecasting Next
A week ago, Glomac Berhad (KLSE:GLOMAC) came out with a strong set of full-year numbers that could potentially lead to a re-rate of the stock. It was overall a positive result, with revenues beating expectations by 3.6% to hit RM226m. Glomac Berhad also reported a statutory profit of RM0.028, which was an impressive 45% above what the analyst had forecast. Following the result, the analyst has 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 collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.
After the latest results, the one analyst covering Glomac Berhad are now predicting revenues of RM241.6m in 2027. If met, this would reflect a modest 6.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to drop 17% to RM0.023 in the same period. Yet prior to the latest earnings, the analyst had been anticipated revenues of RM263.7m and earnings per share (EPS) of RM0.022 in 2027. So it's pretty clear that while sentiment around revenues has declined following the latest results, the analyst is now more bullish on the company's earnings power.
Check out our latest analysis for Glomac Berhad
The consensus has made no major changes to the price target of RM0.34, suggesting the forecast improvement in earnings is expected to offset the decline in revenues next year.
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. One thing stands out from these estimates, which is that Glomac Berhad is forecast to grow faster in the future than it has in the past, with revenues expected to display 6.8% annualised growth until the end of 2027. If achieved, this would be a much better result than the 9.3% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 9.4% per year. So although Glomac Berhad's revenue growth is expected to improve, it is still expected to grow slower than the industry.
The Bottom Line
The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Glomac Berhad following these results. 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. With that said, earnings are more important to the long-term 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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Glomac Berhad going out as far as 2029, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Glomac Berhad that you should be aware of.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.