SFP Tech Holdings Berhad Just Recorded A 11% EPS Beat: Here's What Analysts Are Forecasting Next

SFP Tech Holdings Berhad (KLSE:SFPTECH) just released its yearly report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 7.3% to hit RM86m. SFP Tech Holdings Berhad reported statutory earnings per share (EPS) RM0.04, which was a notable 11% above what the analysts had forecast. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for SFP Tech Holdings Berhad

Following the latest results, SFP Tech Holdings Berhad's two analysts are now forecasting revenues of RM116.6m in 2023. This would be a substantial 36% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to bounce 43% to RM0.057. In the lead-up to this report, the analysts had been modelling revenues of RM112.3m and earnings per share (EPS) of RM0.057 in 2023. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a small lift in to revenue forecasts.

The analysts increased their price target 48% to RM2.40, perhaps signalling that higher revenues are a strong leading indicator for SFP Tech Holdings Berhad's valuation.

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. We can infer from the latest estimates that forecasts expect a continuation of SFP Tech Holdings Berhad'shistorical trends, as the 36% annualised revenue growth to the end of 2023 is roughly in line with the 34% annual revenue growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 13% per year. So although SFP Tech Holdings Berhad is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

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. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. 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 least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

It is also worth noting that we have found 1 warning sign for SFP Tech Holdings Berhad that you need to take into consideration.

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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.