Genting Malaysia Berhad (KLSE:GENM) Just Reported Third-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

Genting Malaysia Berhad (KLSE:GENM) came out with its third-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It was a credible result overall, with revenues of RM2.7b and statutory earnings per share of RM0.077 both in line with analyst estimates, showing that Genting Malaysia Berhad is executing in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Genting Malaysia Berhad after the latest results.

Check out our latest analysis for Genting Malaysia Berhad

Taking into account the latest results, the most recent consensus for Genting Malaysia Berhad from 13 analysts is for revenues of RM11.4b in 2025. If met, it would imply a credible 4.1% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be RM0.16, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM11.5b and earnings per share (EPS) of RM0.17 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at RM3.03, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 Genting Malaysia Berhad analyst has a price target of RM3.65 per share, while the most pessimistic values it at RM2.28. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. It's pretty clear that there is an expectation that Genting Malaysia Berhad's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.3% growth on an annualised basis. This is compared to a historical growth rate of 9.2% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.2% annually. Factoring in the forecast slowdown in growth, it seems obvious that Genting Malaysia Berhad is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Genting Malaysia Berhad. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Genting Malaysia Berhad's revenue is expected to perform worse 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 Genting Malaysia 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 Genting Malaysia Berhad going out to 2026, and you can see them free on our platform here..

You still need to take note of risks, for example - Genting Malaysia Berhad has 2 warning signs we think you should be aware of.

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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.