99 Speed Mart Retail Holdings Berhad Just Missed EPS By 6.6%: Here's What Analysts Think Will Happen Next

It's shaping up to be a tough period for 99 Speed Mart Retail Holdings Berhad (KLSE:99SMART), which a week ago released some disappointing full-year results that could have a notable impact on how the market views the stock. 99 Speed Mart Retail Holdings Berhad missed analyst forecasts, with revenues of RM10.0b and statutory earnings per share (EPS) of RM0.058, falling short by 2.7% and 6.6% respectively. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for 99 Speed Mart Retail Holdings Berhad

Taking into account the latest results, the consensus forecast from 99 Speed Mart Retail Holdings Berhad's six analysts is for revenues of RM11.3b in 2025. This reflects a meaningful 13% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 19% to RM0.069. Before this earnings report, the analysts had been forecasting revenues of RM11.4b and earnings per share (EPS) of RM0.071 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at RM2.71, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on 99 Speed Mart Retail Holdings Berhad, with the most bullish analyst valuing it at RM2.98 and the most bearish at RM2.60 per share. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting 99 Speed Mart Retail Holdings Berhad's growth to accelerate, with the forecast 13% annualised growth to the end of 2025 ranking favourably alongside historical growth of 8.5% per annum over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 9.3% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that 99 Speed Mart Retail Holdings Berhad is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple 99 Speed Mart Retail Holdings Berhad analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - 99 Speed Mart Retail Holdings Berhad has 1 warning sign we think you should be aware of.

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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.