Stock Analysis

Kerjaya Prospek Group Berhad Just Missed EPS By 5.4%: Here's What Analysts Think Will Happen Next

KLSE:KERJAYA
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As you might know, Kerjaya Prospek Group Berhad (KLSE:KERJAYA) recently reported its yearly numbers. Results were mixed, with revenues of RM1.8b exceeding expectations, even as earnings per share (EPS) came up short. Statutory earnings were RM0.13 per share, -5.4% below whatthe analysts had forecast. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Kerjaya Prospek Group Berhad after the latest results.

Check out our latest analysis for Kerjaya Prospek Group Berhad

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KLSE:KERJAYA Earnings and Revenue Growth March 4th 2025

Taking into account the latest results, the consensus forecast from Kerjaya Prospek Group Berhad's six analysts is for revenues of RM1.98b in 2025. This reflects a notable 8.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 25% to RM0.16. Before this earnings report, the analysts had been forecasting revenues of RM1.87b and earnings per share (EPS) of RM0.16 in 2025. There doesn't appear to have been a major change in sentiment following the results, other than the small increase to revenue estimates.

It may not be a surprise to see thatthe analysts have reconfirmed their price target of RM2.45, implying that the uplift in revenue is not expected to greatly contribute to Kerjaya Prospek Group Berhad's valuation in the near term. 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 Kerjaya Prospek Group Berhad, with the most bullish analyst valuing it at RM2.72 and the most bearish at RM2.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business 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. We would highlight that Kerjaya Prospek Group Berhad's revenue growth is expected to slow, with the forecast 8.0% annualised growth rate until the end of 2025 being well below the historical 15% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 14% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Kerjaya Prospek Group Berhad.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. The consensus price target held steady at RM2.45, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Kerjaya Prospek Group Berhad going out to 2027, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 1 warning sign for Kerjaya Prospek Group Berhad you should be aware of.

Valuation is complex, but we're here to simplify it.

Discover if Kerjaya Prospek Group Berhad might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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.

About KLSE:KERJAYA

Kerjaya Prospek Group Berhad

An investment holding company, provides building construction, project management, interior fit-out, and miscellaneous construction related services for the residential and commercial buildings in Malaysia.

Flawless balance sheet established dividend payer.