News Flash: One Analyst Just Made A Huge Upgrade To Their JAKS Resources Berhad (KLSE:JAKS) Forecasts

JAKS Resources Berhad (KLSE:JAKS) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the upgrade, the latest consensus from JAKS Resources Berhad's sole analyst is for revenues of RM462m in 2021, which would reflect a major 78% improvement in sales compared to the last 12 months. The losses are expected to disappear over the next year or so, with forecasts for a profit of RM0.061 per share this year. Prior to this update, the analyst had been forecasting revenues of RM314m and earnings per share (EPS) of RM0.056 in 2021. Sentiment certainly seems to have improved in recent times, with a great increase in revenue and a slight bump in earnings per share estimates.

View our latest analysis for JAKS Resources Berhad

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 JAKS Resources Berhad's rate of growth is expected to accelerate meaningfully, with the forecast 78% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 3.7% p.a. 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 13% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect JAKS Resources Berhad to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, the analyst also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at JAKS Resources Berhad.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2023, which can be seen for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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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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