Berjaya Sports Toto Berhad (KLSE:BJTOTO) Second-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

As you might know, Berjaya Sports Toto Berhad (KLSE:BJTOTO) recently reported its second-quarter numbers. Berjaya Sports Toto Berhad reported in line with analyst predictions, delivering revenues of RM1.2b and statutory earnings per share of RM0.10, suggesting the business is executing well and in line with its plan. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Berjaya Sports Toto Berhad

Taking into account the latest results, the most recent consensus for Berjaya Sports Toto Berhad from eleven analysts is for revenues of RM5.03b in 2021 which, if met, would be a meaningful 11% increase on its sales over the past 12 months. Per-share earnings are expected to leap 62% to RM0.16. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM5.11b and earnings per share (EPS) of RM0.16 in 2021. 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.

The analysts reconfirmed their price target of RM2.46, showing that the business is executing well and in line with expectations. 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 Berjaya Sports Toto Berhad analyst has a price target of RM3.00 per share, while the most pessimistic values it at RM1.80. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. One thing stands out from these estimates, which is that Berjaya Sports Toto Berhad is forecast to grow faster in the future than it has in the past, with revenues expected to grow 11%. If achieved, this would be a much better result than the 3.0% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 33% per year. Although Berjaya Sports Toto Berhad's revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the wider 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, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Berjaya Sports Toto Berhad's revenues are expected to perform worse than the wider industry. The consensus price target held steady at RM2.46, 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 Berjaya Sports Toto Berhad analysts - going out to 2023, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Berjaya Sports Toto Berhad that we have uncovered.

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This article by Simply Wall St is general in nature. 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.
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