Earnings Miss: Jaycorp Berhad Missed EPS By 9.2% And Analysts Are Revising Their Forecasts

As you might know, Jaycorp Berhad (KLSE:JAYCORP) recently reported its full-year numbers. It looks like the results were a bit of a negative overall. While revenues of RM306m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 9.2% to hit RM0.08 per share. The analyst 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. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.

View our latest analysis for Jaycorp Berhad

Taking into account the latest results, the current consensus, from the one analyst covering Jaycorp Berhad, is for revenues of RM282.1m in 2023, which would reflect a measurable 7.7% reduction in Jaycorp Berhad's sales over the past 12 months. Statutory earnings per share are forecast to dip 2.3% to RM0.078 in the same period. In the lead-up to this report, the analyst had been modelling revenues of RM296.1m and earnings per share (EPS) of RM0.086 in 2023. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

It'll come as no surprise then, to learn that the analyst has cut their price target 7.0% to RM0.66.

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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 7.7% by the end of 2023. This indicates a significant reduction from annual growth of 0.8% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 9.0% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Jaycorp Berhad is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates revenues are expected to perform worse than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Jaycorp Berhad. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Jaycorp Berhad going out as far as 2025, and you can see them free on our platform here.

It is also worth noting that we have found 3 warning signs for Jaycorp Berhad (1 is a bit concerning!) 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.