P.I.E. Industrial Berhad Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

It's shaping up to be a tough period for P.I.E. Industrial Berhad (KLSE:PIE), which a week ago released some disappointing yearly results that could have a notable impact on how the market views the stock. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at RM975m, statutory earnings missed forecasts by an incredible 22%, coming in at just RM0.14 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on P.I.E. Industrial Berhad after the latest results.

View our latest analysis for P.I.E. Industrial Berhad

Taking into account the latest results, the consensus forecast from P.I.E. Industrial Berhad's three analysts is for revenues of RM1.66b in 2025. This reflects a huge 70% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 68% to RM0.23. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM1.79b and earnings per share (EPS) of RM0.27 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.

It'll come as no surprise then, to learn that the analysts have cut their price target 27% to RM4.87. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on P.I.E. Industrial Berhad, with the most bullish analyst valuing it at RM5.52 and the most bearish at RM4.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. It's clear from the latest estimates that P.I.E. Industrial Berhad's rate of growth is expected to accelerate meaningfully, with the forecast 70% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 12% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 26% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect P.I.E. Industrial Berhad to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded P.I.E. Industrial Berhad's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of P.I.E. Industrial Berhad's future valuation.

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 P.I.E. Industrial Berhad going out to 2027, and you can see them free on our platform here.

You can also see our analysis of P.I.E. Industrial Berhad's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.