AFFIN Bank Berhad Just Missed EPS By 6.5%: Here's What Analysts Think Will Happen Next
AFFIN Bank Berhad (KLSE:AFFIN) missed earnings with its latest second-quarter results, disappointing overly-optimistic forecasters. AFFIN Bank Berhad missed analyst forecasts, with revenues of RM647m and statutory earnings per share (EPS) of RM0.049, falling short by 3.9% and 6.5% respectively. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the consensus forecast from AFFIN Bank Berhad's nine analysts is for revenues of RM2.65b in 2026. This reflects a credible 7.8% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be RM0.21, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of RM2.66b and earnings per share (EPS) of RM0.22 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.
View our latest analysis for AFFIN Bank Berhad
It might be a surprise to learn that the consensus price target fell 6.9% to RM2.46, with the analysts clearly linking lower forecast earnings to the performance of the stock price. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values AFFIN Bank Berhad at RM2.93 per share, while the most bearish prices it at RM2.28. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong 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. The analysts are definitely expecting AFFIN Bank Berhad's growth to accelerate, with the forecast 16% annualised growth to the end of 2026 ranking favourably alongside historical growth of 11% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.2% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that AFFIN Bank Berhad is expected to grow much faster than its industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for AFFIN Bank Berhad. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of AFFIN Bank Berhad's future valuation.
With that in mind, we wouldn't be too quick to come to a conclusion on AFFIN Bank Berhad. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple AFFIN Bank Berhad analysts - going out to 2028, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 1 warning sign for AFFIN Bank 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.