Stock Analysis

VEEM Ltd Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

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As you might know, VEEM Ltd (ASX:VEE) just kicked off its latest half-year results with some very strong numbers. It was overall a positive result, with revenues beating expectations by 3.9% to hit AU$37m. VEEM also reported a statutory profit of AU$0.026, which was an impressive 29% 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. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

Check out our latest analysis for VEEM

ASX:VEE Earnings and Revenue Growth February 25th 2024

Taking into account the latest results, the current consensus from VEEM's lone analyst is for revenues of AU$75.1m in 2024. This would reflect a decent 8.1% increase on its revenue over the past 12 months. Per-share earnings are expected to swell 13% to AU$0.048. Before this earnings report, the analyst had been forecasting revenues of AU$72.9m and earnings per share (EPS) of AU$0.04 in 2024. So it seems there's been a definite increase in optimism about VEEM's future following the latest results, with a nice gain to the earnings per share forecasts in particular.

It will come as no surprise to learn that the analyst has increased their price target for VEEM 50% to AU$1.50on the back of these upgrades.

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. It's clear from the latest estimates that VEEM's rate of growth is expected to accelerate meaningfully, with the forecast 17% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 8.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 58% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, VEEM is expected to grow slower than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around VEEM's earnings potential next year. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on VEEM. Long-term earnings power is much more important than next year's profits. We have analyst estimates for VEEM going out as far as 2026, and you can see them free on our platform here.

You can also view our analysis of VEEM's balance sheet, and whether we think VEEM is carrying too much debt, for free on our platform 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.