Gamuda Berhad Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Gamuda Berhad (KLSE:GAMUDA) last week reported its latest yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Gamuda Berhad beat revenue expectations by 8.8%, at RM13b. Statutory earnings per share (EPS) came in at RM0.32, some 7.1% short of analyst estimates. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Gamuda Berhad

Taking into account the latest results, the current consensus from Gamuda Berhad's 16 analysts is for revenues of RM15.1b in 2025. This would reflect a notable 13% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 33% to RM0.43. In the lead-up to this report, the analysts had been modelling revenues of RM14.9b and earnings per share (EPS) of RM0.44 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The consensus price target rose 6.8% to RM8.79despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Gamuda Berhad's earnings by assigning a price premium. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Gamuda Berhad, with the most bullish analyst valuing it at RM10.37 and the most bearish at RM6.40 per share. 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.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Gamuda Berhad's revenue growth is expected to slow, with the forecast 13% annualised growth rate until the end of 2025 being well below the historical 27% p.a. growth over the last five years. Compare this to the 86 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 12% per year. So it's pretty clear that, while Gamuda Berhad's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Gamuda 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 3 warning signs for Gamuda 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.