Analysts Have Made A Financial Statement On RHB Bank Berhad's (KLSE:RHBBANK) Yearly Report

RHB Bank Berhad (KLSE:RHBBANK) missed earnings with its latest yearly results, disappointing overly-optimistic forecasters. Results look to have been somewhat negative - revenue fell 4.5% short of analyst estimates at RM7.5b, and statutory earnings of RM0.66 per share missed forecasts by 3.4%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on RHB Bank Berhad after the latest results.

Check out our latest analysis for RHB Bank Berhad

Taking into account the latest results, the consensus forecast from RHB Bank Berhad's 15 analysts is for revenues of RM8.27b in 2024. This reflects a notable 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 2.2% to RM0.67. In the lead-up to this report, the analysts had been modelling revenues of RM8.27b and earnings per share (EPS) of RM0.69 in 2024. 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.

The consensus price target held steady at RM6.02, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. Currently, the most bullish analyst values RHB Bank Berhad at RM7.25 per share, while the most bearish prices it at RM5.20. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. The analysts are definitely expecting RHB Bank Berhad's growth to accelerate, with the forecast 11% annualised growth to the end of 2024 ranking favourably alongside historical growth of 4.5% 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 6.1% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that RHB Bank Berhad is expected to grow much faster than its 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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. At Simply Wall St, we have a full range of analyst estimates for RHB Bank Berhad going out to 2026, and you can see them free on our platform here..

Even so, be aware that RHB Bank Berhad is showing 1 warning sign in our investment analysis , 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.