Stock Analysis

Earnings Miss: Pintaras Jaya Berhad Missed EPS And Analysts Are Revising Their Forecasts

KLSE:PTARAS
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Pintaras Jaya Berhad (KLSE:PTARAS) shareholders are probably feeling a little disappointed, since its shares fell 7.1% to RM1.45 in the week after its latest yearly results. Things were not great overall, with a surprise (statutory) loss of RM0.03 per share on revenues of RM305m, even though the analysts had been expecting a profit. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Pintaras Jaya Berhad

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KLSE:PTARAS Earnings and Revenue Growth August 30th 2024

Taking into account the latest results, the current consensus from Pintaras Jaya Berhad's three analysts is for revenues of RM370.7m in 2025. This would reflect a substantial 22% increase on its revenue over the past 12 months. Earnings are expected to improve, with Pintaras Jaya Berhad forecast to report a statutory profit of RM0.06 per share. Before this earnings report, the analysts had been forecasting revenues of RM355.9m and earnings per share (EPS) of RM0.07 in 2025. So it's pretty clear the analysts have mixed opinions on Pintaras Jaya Berhad after the latest results; even though they upped their revenue numbers, it came at the cost of a real cut to per-share earnings expectations.

The consensus price target fell 5.5% to RM1.72, suggesting that the analysts are primarily focused on earnings as the driver of value for this business. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Pintaras Jaya Berhad, with the most bullish analyst valuing it at RM1.85 and the most bearish at RM1.64 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Pintaras Jaya Berhad is an easy business to forecast or the the analysts are all using similar assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. For example, we noticed that Pintaras Jaya Berhad's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 22% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 3.0% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 14% per year. So it looks like Pintaras Jaya Berhad is expected to grow faster than its competitors, at least for a while.

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. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Pintaras Jaya Berhad. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Pintaras Jaya Berhad analysts - going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Pintaras Jaya Berhad that you should be aware of.

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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.