One Analyst's Earnings Estimates For Signature International Berhad (KLSE:SIGN) Are Surging Higher

Celebrations may be in order for Signature International Berhad (KLSE:SIGN) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects.

Following the upgrade, the current consensus from Signature International Berhad's solo analyst is for revenues of RM354m in 2022 which - if met - would reflect a huge 168% increase on its sales over the past 12 months. Statutory earnings per share are presumed to shoot up 101% to RM0.064. Previously, the analyst had been modelling revenues of RM285m and earnings per share (EPS) of RM0.052 in 2022. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

See our latest analysis for Signature International Berhad

It will come as no surprise to learn that the analyst has increased their price target for Signature International Berhad 21% to RM1.35 on the back of these upgrades.

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. For example, we noticed that Signature International Berhad's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 168% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 12% a year 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 9.4% per year. Not only are Signature International Berhad's revenues expected to improve, it seems that the analyst is also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Signature International Berhad.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Signature International Berhad going out as far as 2024, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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