Earnings Report: 99 Speed Mart Retail Holdings Berhad Missed Revenue Estimates By 6.8%

It's been a good week for 99 Speed Mart Retail Holdings Berhad (KLSE:99SMART) shareholders, because the company has just released its latest second-quarter results, and the shares gained 4.6% to RM2.52. Revenues came in 6.8% below expectations, at RM2.7b. Statutory earnings per share were relatively better off, with a per-share profit of RM0.058 being roughly in line with analyst estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Following the latest results, 99 Speed Mart Retail Holdings Berhad's nine analysts are now forecasting revenues of RM11.3b in 2025. This would be a reasonable 7.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to swell 11% to RM0.07. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM11.2b and earnings per share (EPS) of RM0.069 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

View our latest analysis for 99 Speed Mart Retail Holdings Berhad

The consensus price target rose 5.8% to RM2.78despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of 99 Speed Mart Retail Holdings Berhad's earnings by assigning a price premium. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on 99 Speed Mart Retail Holdings Berhad, with the most bullish analyst valuing it at RM3.00 and the most bearish at RM2.30 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. The analysts are definitely expecting 99 Speed Mart Retail Holdings Berhad's growth to accelerate, with the forecast 16% annualised growth to the end of 2025 ranking favourably alongside historical growth of 8.9% per annum over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. 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 there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for 99 Speed Mart Retail Holdings Berhad going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for 99 Speed Mart Retail Holdings Berhad that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.