Mr D.I.Y. Group (M) Berhad Just Missed EPS By 24%: Here's What Analysts Think Will Happen Next
Mr D.I.Y. Group (M) Berhad (KLSE:MRDIY) just released its latest second-quarter report and things are not looking great. Results showed a clear earnings miss, with RM1.3b revenue coming in 6.4% lower than what the analystsexpected. Statutory earnings per share (EPS) of RM0.014 missed the mark badly, arriving some 24% below what was expected. 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.
Taking into account the latest results, the consensus forecast from Mr D.I.Y. Group (M) Berhad's 16 analysts is for revenues of RM5.34b in 2026. This reflects a satisfactory 4.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 6.2% to RM0.07. Before this earnings report, the analysts had been forecasting revenues of RM5.40b and earnings per share (EPS) of RM0.074 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.
Check out our latest analysis for Mr D.I.Y. Group (M) Berhad
The average price target fell 5.2% to RM1.95, with reduced earnings forecasts clearly tied to a lower valuation estimate. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Mr D.I.Y. Group (M) Berhad, with the most bullish analyst valuing it at RM2.20 and the most bearish at RM1.60 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Mr D.I.Y. Group (M) Berhad shareholders.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Mr D.I.Y. Group (M) Berhad'shistorical trends, as the 9.1% annualised revenue growth to the end of 2026 is roughly in line with the 9.2% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.2% annually. So although Mr D.I.Y. Group (M) Berhad is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Mr D.I.Y. Group (M) Berhad analysts - going out to 2028, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Mr D.I.Y. Group (M) Berhad that 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.