Pecca Group Berhad Just Missed EPS By 8.3%: Here's What Analysts Think Will Happen Next
It's shaping up to be a tough period for Pecca Group Berhad (KLSE:PECCA), which a week ago released some disappointing full-year results that could have a notable impact on how the market views the stock. Results look to have been somewhat negative - revenue fell 3.9% short of analyst estimates at RM222m, and statutory earnings of RM0.071 per share missed forecasts by 8.3%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Pecca Group Berhad after the latest results.
Taking into account the latest results, the most recent consensus for Pecca Group Berhad from three analysts is for revenues of RM249.8m in 2027. If met, it would imply a decent 13% increase on its revenue over the past 12 months. Per-share earnings are expected to expand 17% to RM0.084. Before this earnings report, the analysts had been forecasting revenues of RM256.1m and earnings per share (EPS) of RM0.089 in 2027. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.
See our latest analysis for Pecca Group Berhad
The consensus price target fell 11% to RM1.44, with the weaker earnings outlook clearly leading valuation estimates. 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. The most optimistic Pecca Group Berhad analyst has a price target of RM1.46 per share, while the most pessimistic values it at RM1.42. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Pecca Group Berhad is an easy business to forecast or the the analysts are all using similar assumptions.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Pecca Group Berhad's growth to accelerate, with the forecast 13% annualised growth to the end of 2027 ranking favourably alongside historical growth of 9.1% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 10% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Pecca Group Berhad is expected to grow at about the same rate as 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. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Pecca Group Berhad's future valuation.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Pecca Group Berhad going out to 2029, and you can see them free on our platform here..
And what about risks? Every company has them, and we've spotted 1 warning sign for Pecca Group Berhad you should know about.
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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.