One Inta Bina Group Berhad (KLSE:INTA) Analyst Just Cut Their EPS Forecasts

The latest analyst coverage could presage a bad day for Inta Bina Group Berhad (KLSE:INTA), with the covering analyst making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) estimates were cut sharply as the analyst factored in the latest outlook for the business, concluding that they were too optimistic previously.

After this downgrade, Inta Bina Group Berhad's lone analyst is now forecasting revenues of RM340m in 2021. This would be a meaningful 9.5% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to shoot up 23% to RM0.025. Prior to this update, the analyst had been forecasting revenues of RM430m and earnings per share (EPS) of RM0.032 in 2021. Indeed, we can see that the analyst is a lot more bearish about Inta Bina Group Berhad's prospects, administering a pretty serious reduction to revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Inta Bina Group Berhad

The consensus price target fell 8.9% to RM0.41, with the weaker earnings outlook clearly leading analyst valuation estimates.

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 clear from the latest estimates that Inta Bina Group Berhad's rate of growth is expected to accelerate meaningfully, with the forecast 9.5% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 1.0% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. Inta Bina Group Berhad is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing to take away is that the analyst cut their earnings per share estimates, expecting a clear decline in business conditions. There was also a drop in their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for Inta Bina Group Berhad going out as far as 2023, and you can see them free on our platform here.

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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.

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