Frontken Corporation Berhad Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Frontken Corporation Berhad (KLSE:FRONTKN) missed earnings with its latest yearly results, disappointing overly-optimistic forecasters. Frontken Corporation Berhad missed earnings this time around, with RM500m revenue coming in 6.5% below what the analysts had modelled. Statutory earnings per share (EPS) of RM0.071 also fell short of expectations by 10%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Frontken Corporation Berhad after the latest results.

See our latest analysis for Frontken Corporation Berhad

Taking into account the latest results, the most recent consensus for Frontken Corporation Berhad from seven analysts is for revenues of RM666.0m in 2024. If met, it would imply a major 33% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 55% to RM0.11. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM669.3m and earnings per share (EPS) of RM0.11 in 2024. So the consensus seems to have become somewhat more optimistic on Frontken Corporation Berhad's earnings potential following these results.

The consensus price target rose 14% to RM4.27, suggesting that higher earnings estimates flow through to the stock's valuation as well. 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. Currently, the most bullish analyst values Frontken Corporation Berhad at RM4.75 per share, while the most bearish prices it at RM4.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. It's clear from the latest estimates that Frontken Corporation Berhad's rate of growth is expected to accelerate meaningfully, with the forecast 33% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 11% p.a. 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 18% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Frontken Corporation Berhad is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Frontken Corporation Berhad following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Frontken Corporation Berhad going out to 2026, and you can see them free on our platform here..

We also provide an overview of the Frontken Corporation Berhad Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.