Poh Huat Resources Holdings Berhad Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Poh Huat Resources Holdings Berhad (KLSE:POHUAT) just released its latest full-year results and things are looking bullish. The company beat both earnings and revenue forecasts, with revenue of RM660m, some 3.9% above estimates, and statutory earnings per share (EPS) coming in at RM0.22, 34% ahead of expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Poh Huat Resources Holdings Berhad

After the latest results, the four analysts covering Poh Huat Resources Holdings Berhad are now predicting revenues of RM718.7m in 2021. If met, this would reflect a meaningful 9.0% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to dip 4.8% to RM0.21 in the same period. In the lead-up to this report, the analysts had been modelling revenues of RM721.0m and earnings per share (EPS) of RM0.20 in 2021. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at RM2.02, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. Currently, the most bullish analyst values Poh Huat Resources Holdings Berhad at RM2.37 per share, while the most bearish prices it at RM1.80. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. The analysts are definitely expecting Poh Huat Resources Holdings Berhad's growth to accelerate, with the forecast 9.0% growth ranking favourably alongside historical growth of 7.0% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.1% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that Poh Huat Resources Holdings Berhad is expected to grow at about the same rate as the wider 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 Poh Huat Resources Holdings Berhad following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at RM2.02, with the latest estimates not enough to have an impact on their price targets.

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 Poh Huat Resources Holdings Berhad going out to 2023, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Poh Huat Resources Holdings Berhad , and understanding these should be part of your investment process.

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This article by Simply Wall St is general in nature. 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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