Berjaya Food Berhad (KLSE:BJFOOD) Analysts Are Cutting Their Estimates: Here's What You Need To Know

It's shaping up to be a tough period for Berjaya Food Berhad (KLSE:BJFOOD), which a week ago released some disappointing yearly results that could have a notable impact on how the market views the stock. It definitely looks like a negative result overall with revenues falling 17% short of analyst estimates at RM730m. Statutory losses were RM0.052 per share, 183% bigger than what the analysts expected. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Berjaya Food Berhad

Following the latest results, Berjaya Food Berhad's four analysts are now forecasting revenues of RM930.8m in 2025. This would be a major 27% improvement in revenue compared to the last 12 months. Berjaya Food Berhad is also expected to turn profitable, with statutory earnings of RM0.012 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM1.01b and earnings per share (EPS) of RM0.029 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a large cut to earnings per share estimates.

The consensus price target fell 7.1% to RM0.49, with the weaker earnings outlook clearly leading valuation estimates. 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. The most optimistic Berjaya Food Berhad analyst has a price target of RM1.00 per share, while the most pessimistic values it at RM0.20. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

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 Berjaya Food Berhad's growth to accelerate, with the forecast 27% annualised growth to the end of 2025 ranking favourably alongside historical growth of 11% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.4% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Berjaya Food Berhad to grow faster than the wider 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. They also downgraded Berjaya Food Berhad's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 forecasts for Berjaya Food Berhad going out to 2027, and you can see them free on our platform here.

Even so, be aware that Berjaya Food Berhad is showing 1 warning sign in our investment analysis , you should know about...

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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.