Results: My E.G. Services Berhad Beat Earnings Expectations And Analysts Now Have New Forecasts

A week ago, My E.G. Services Berhad (KLSE:MYEG) came out with a strong set of yearly numbers that could potentially lead to a re-rate of the stock. The company beat expectations with revenues of RM1.0b arriving 3.8% ahead of forecasts. Statutory earnings per share (EPS) were RM0.093, 6.3% ahead of estimates. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for My E.G. Services Berhad

After the latest results, the five analysts covering My E.G. Services Berhad are now predicting revenues of RM1.07b in 2025. If met, this would reflect a satisfactory 5.7% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be RM0.092, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of RM1.03b and earnings per share (EPS) of RM0.089 in 2025. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of RM1.47, suggesting that the forecast performance does not have a long term impact on the company's valuation. 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. The most optimistic My E.G. Services Berhad analyst has a price target of RM1.70 per share, while the most pessimistic values it at RM1.25. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that My E.G. Services Berhad's revenue growth is expected to slow, with the forecast 5.7% annualised growth rate until the end of 2025 being well below the historical 12% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.0% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than My E.G. Services Berhad.

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 My E.G. Services Berhad following these results. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. The consensus price target held steady at RM1.47, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on My E.G. Services Berhad. Long-term earnings power is much more important than next year's profits. We have forecasts for My E.G. Services Berhad going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for My E.G. Services Berhad (1 is a bit unpleasant!) that we have uncovered.

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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.