George Kent (Malaysia) Berhad Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

George Kent (Malaysia) Berhad (KLSE:GKENT) just released its full-year report and things are looking bullish. The company beat expectations with revenues of RM276m arriving 5.0% ahead of forecasts. Statutory earnings per share (EPS) were RM0.071, 9.8% ahead of 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for George Kent (Malaysia) Berhad

Following the latest results, George Kent (Malaysia) Berhad's three analysts are now forecasting revenues of RM346.8m in 2022. This would be a major 26% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to jump 42% to RM0.10. Before this earnings report, the analysts had been forecasting revenues of RM314.0m and earnings per share (EPS) of RM0.092 in 2022. Sentiment certainly seems to have improved after the latest results, with a solid increase in revenue and a small increase to earnings per share estimates.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 16% to RM0.67per share. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on George Kent (Malaysia) Berhad, with the most bullish analyst valuing it at RM0.74 and the most bearish at RM0.56 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. One thing stands out from these estimates, which is that George Kent (Malaysia) Berhad is forecast to grow faster in the future than it has in the past, with revenues expected to display 26% annualised growth until the end of 2022. If achieved, this would be a much better result than the 17% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 9.8% per year. So it looks like George Kent (Malaysia) Berhad is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards George Kent (Malaysia) Berhad following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for George Kent (Malaysia) Berhad going out to 2024, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 3 warning signs for George Kent (Malaysia) Berhad (1 doesn't sit too well with us!) that you should be aware of.

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This article by Simply Wall St is general in nature. 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.
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