Aeon Co. (M) Bhd. Just Missed Earnings - But Analysts Have Updated Their Models

Last week saw the newest full-year earnings release from Aeon Co. (M) Bhd. (KLSE:AEON), an important milestone in the company's journey to build a stronger business. Revenues were in line with forecasts, at RM4.3b, although statutory earnings per share came in 15% below what the analysts expected, at RM0.091 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Aeon (M) Bhd

Following the latest results, Aeon (M) Bhd's eight analysts are now forecasting revenues of RM4.41b in 2025. This would be a modest 3.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 27% to RM0.12. In the lead-up to this report, the analysts had been modelling revenues of RM4.42b and earnings per share (EPS) of RM0.12 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at RM1.78. 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. The most optimistic Aeon (M) Bhd analyst has a price target of RM2.00 per share, while the most pessimistic values it at RM1.56. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. For example, we noticed that Aeon (M) Bhd's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 3.5% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 0.1% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 9.3% annually for the foreseeable future. So although Aeon (M) Bhd's revenue growth is expected to improve, it is still expected to grow slower than the 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at RM1.78, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Aeon (M) Bhd analysts - going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Aeon (M) Bhd that you need to take into consideration.

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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.