Sunway Construction Group Berhad Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year

A week ago, Sunway Construction Group Berhad (KLSE:SUNCON) came out with a strong set of third-quarter numbers that could potentially lead to a re-rate of the stock. Sunway Construction Group Berhad delivered a significant beat to revenue and earnings per share (EPS) expectations, hitting RM865m-11% above indicated-andRM0.036-20% above forecasts- respectively 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Sunway Construction Group Berhad

After the latest results, the 16 analysts covering Sunway Construction Group Berhad are now predicting revenues of RM4.45b in 2025. If met, this would reflect a sizeable 49% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 58% to RM0.21. Before this earnings report, the analysts had been forecasting revenues of RM4.47b and earnings per share (EPS) of RM0.21 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of RM4.79, showing that the business is executing well and in line with expectations. 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. There are some variant perceptions on Sunway Construction Group Berhad, with the most bullish analyst valuing it at RM6.00 and the most bearish at RM3.70 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Sunway Construction Group Berhad's past performance and to peers in the same industry. The analysts are definitely expecting Sunway Construction Group Berhad's growth to accelerate, with the forecast 37% annualised growth to the end of 2025 ranking favourably alongside historical growth of 13% per annum 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. Factoring in the forecast acceleration in revenue, it's pretty clear that Sunway Construction Group Berhad is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Sunway Construction Group Berhad going out to 2026, and you can see them free on our platform here..

It might also be worth considering whether Sunway Construction Group Berhad's debt load is appropriate, using our debt analysis tools on the Simply Wall St 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.