99 Speed Mart Retail Holdings Berhad Just Missed Revenue By 8.2%: Here's What Analysts Think Will Happen Next

As you might know, 99 Speed Mart Retail Holdings Berhad (KLSE:99SMART) recently reported its first-quarter numbers. Revenues came in 8.2% below expectations, at RM2.6b. Statutory earnings per share were relatively better off, with a per-share profit of RM0.058 being roughly in line with analyst estimates. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following the latest results, 99 Speed Mart Retail Holdings Berhad's eight analysts are now forecasting revenues of RM11.2b in 2025. This would be a notable 10% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 15% to RM0.069. Before this earnings report, the analysts had been forecasting revenues of RM11.2b and earnings per share (EPS) of RM0.07 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

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

There were no changes to revenue or earnings estimates or the price target of RM2.63, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values 99 Speed Mart Retail Holdings Berhad at RM2.98 per share, while the most bearish prices it at RM2.30. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting 99 Speed Mart Retail Holdings Berhad is an easy business to forecast or the the analysts are all using similar assumptions.

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. It's clear from the latest estimates that 99 Speed Mart Retail Holdings Berhad's rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 8.1% over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 9.5% 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 obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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.

With that in mind, we wouldn't be too quick to come to a conclusion on 99 Speed Mart Retail Holdings Berhad. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for 99 Speed Mart Retail Holdings Berhad going out to 2027, and you can see them free on our platform here..

You can also see our analysis of 99 Speed Mart Retail Holdings Berhad's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.