Revenue Beat: Sports Toto Berhad Exceeded Revenue Forecasts By 13% And Analysts Are Updating Their Estimates

The third-quarter results for Sports Toto Berhad (KLSE:SPTOTO) were released last week, making it a good time to revisit its performance. Sports Toto Berhad beat revenue forecasts by a solid 13% to hit RM1.9b. Statutory earnings per share came in at RM0.16, 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

We've discovered 3 warning signs about Sports Toto Berhad. View them for free.

Taking into account the latest results, Sports Toto Berhad's six analysts currently expect revenues in 2026 to be RM6.57b, approximately in line with the last 12 months. Statutory earnings per share are expected to drop 16% to RM0.16 in the same period. Before this earnings report, the analysts had been forecasting revenues of RM6.63b and earnings per share (EPS) of RM0.16 in 2026. 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.

Check out our latest analysis for Sports Toto Berhad

It will come as no surprise then, to learn that the consensus price target is largely unchanged at RM1.57. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Sports Toto Berhad, with the most bullish analyst valuing it at RM1.76 and the most bearish at RM1.40 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. We would highlight that Sports Toto Berhad's revenue growth is expected to slow, with the forecast 0.5% annualised growth rate until the end of 2026 being well below the historical 9.8% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.9% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Sports Toto Berhad.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Sports Toto 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.

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 Sports Toto Berhad going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 3 warning signs for Sports Toto Berhad (1 is significant!) 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.