Earnings Beat: Pekat Group Berhad Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

As you might know, Pekat Group Berhad (KLSE:PEKAT) just kicked off its latest yearly results with some very strong numbers. Pekat Group Berhad beat earnings, with revenues hitting RM291m, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 19%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Pekat Group Berhad

Taking into account the latest results, the current consensus from Pekat Group Berhad's three analysts is for revenues of RM481.0m in 2025. This would reflect a huge 65% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 48% to RM0.051. In the lead-up to this report, the analysts had been modelling revenues of RM497.8m and earnings per share (EPS) of RM0.048 in 2025. So it's pretty clear that while sentiment around revenues has declined following the latest results, the analysts are now more bullish on the company's earnings power.

The average price target increased 12% to RM1.41, with the analysts signalling that the improved earnings outlook is more important to the company's valuation than its revenue. 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. The most optimistic Pekat Group Berhad analyst has a price target of RM1.51 per share, while the most pessimistic values it at RM1.30. This is a very narrow spread of estimates, implying either that Pekat Group Berhad is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Pekat Group Berhad's past performance and to peers in the same industry. It's clear from the latest estimates that Pekat Group Berhad's rate of growth is expected to accelerate meaningfully, with the forecast 65% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 15% 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 analysts also expect Pekat Group Berhad to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Pekat Group Berhad's earnings potential next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Still, earnings per share are more important to value creation for shareholders. 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. At Simply Wall St, we have a full range of analyst estimates for Pekat Group Berhad going out to 2027, and you can see them free on our platform here..

You can also view our analysis of Pekat Group Berhad's balance sheet, and whether we think Pekat Group Berhad is carrying too much debt, for 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.