Results: AWC Berhad Beat Earnings Expectations And Analysts Now Have New Forecasts

Shareholders might have noticed that AWC Berhad (KLSE:AWC) filed its annual result this time last week. The early response was not positive, with shares down 5.6% to RM0.51 in the past week. The result was positive overall - although revenues of RM414m were in line with what the analysts predicted, AWC Berhad surprised by delivering a statutory profit of RM0.076 per share, modestly greater than expected. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Following the latest results, AWC Berhad's four analysts are now forecasting revenues of RM423.3m in 2026. This would be a satisfactory 2.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 26% to RM0.094. Before this earnings report, the analysts had been forecasting revenues of RM438.8m and earnings per share (EPS) of RM0.096 in 2026. 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.

Check out our latest analysis for AWC Berhad

It'll come as no surprise then, to learn that the analysts have cut their price target 10% to RM0.95. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic AWC Berhad analyst has a price target of RM1.38 per share, while the most pessimistic values it at RM0.78. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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 pretty clear that there is an expectation that AWC Berhad's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 2.2% growth on an annualised basis. This is compared to a historical growth rate of 6.0% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 15% per year. Factoring in the forecast slowdown in growth, it seems obvious that AWC Berhad is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for AWC Berhad. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on AWC Berhad. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for AWC Berhad going out to 2027, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 2 warning signs for AWC 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.