Pecca Group Berhad Just Missed Earnings And Its Revenue Numbers Were Weaker Than Expected

Last week, you might have seen that Pecca Group Berhad (KLSE:PECCA) released its full-year result to the market. The early response was not positive, with shares down 9.0% to RM1.42 in the past week. Results look mixed - while revenue fell marginally short of analyst estimates at RM225m, statutory earnings were in line with expectations, at RM0.079 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is 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 analyst has changed their mind on Pecca Group Berhad after the latest results.

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Taking into account the latest results, the consensus forecast from Pecca Group Berhad's solitary analyst is for revenues of RM251.0m in 2026. This reflects a meaningful 12% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 4.3% to RM0.083. In the lead-up to this report, the analyst had been modelling revenues of RM284.0m and earnings per share (EPS) of RM0.095 in 2026. It looks like sentiment has declined substantially in the aftermath of these results, with a substantial drop in revenue estimates and a substantial drop in earnings per share numbers as well.

See our latest analysis for Pecca Group Berhad

It'll come as no surprise then, to learn that the analyst has cut their price target 8.3% to RM1.54.

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. We would highlight that Pecca Group Berhad's revenue growth is expected to slow, with the forecast 12% annualised growth rate until the end of 2026 being well below the historical 17% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 10% annually. Factoring in the forecast slowdown in growth, it looks like Pecca Group Berhad is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Pecca Group Berhad. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Pecca Group Berhad going out as far as 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 Pecca Group 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.