Cypark Resources Berhad (KLSE:CYPARK) Just Reported And Analysts Have Been Cutting Their Estimates

As you might know, Cypark Resources Berhad (KLSE:CYPARK) last week released its latest full-year, and things did not turn out so great for shareholders. Revenues missed expectations somewhat, coming in at RM184m, but statutory earnings fell catastrophically short, with a loss of RM0.14 some 199% larger than what the analysts had predicted. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Cypark Resources Berhad

Taking into account the latest results, the consensus forecast from Cypark Resources Berhad's three analysts is for revenues of RM319.0m in 2025. This reflects a huge 73% improvement in revenue compared to the last 12 months. Cypark Resources Berhad is also expected to turn profitable, with statutory earnings of RM0.011 per share. Before this earnings report, the analysts had been forecasting revenues of RM338.3m and earnings per share (EPS) of RM0.031 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a pretty serious reduction to earnings per share estimates.

The analysts made no major changes to their price target of RM0.88, suggesting the downgrades are not expected to have a long-term impact on Cypark Resources Berhad's valuation. 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 Cypark Resources Berhad, with the most bullish analyst valuing it at RM0.96 and the most bearish at RM0.83 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Cypark Resources Berhad's past performance and to peers in the same industry. One thing stands out from these estimates, which is that Cypark Resources Berhad is forecast to grow faster in the future than it has in the past, with revenues expected to display 73% annualised growth until the end of 2025. If achieved, this would be a much better result than the 13% annual decline 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 11% per year. Not only are Cypark Resources Berhad's revenues expected to improve, it seems that the analysts are also expecting it 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. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Cypark Resources Berhad analysts - going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Cypark Resources Berhad (1 can't be ignored!) 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.

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