The Sports Toto Berhad (KLSE:SPTOTO) Full-Year Results Are Out And Analysts Have Published New Forecasts

Sports Toto Berhad (KLSE:SPTOTO) last week reported its latest annual results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It looks like the results were a bit of a negative overall. While revenues of RM6.5b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 3.6% to hit RM0.18 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Following the latest results, Sports Toto Berhad's six analysts are now forecasting revenues of RM6.64b in 2026. This would be an okay 2.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to decrease 6.8% to RM0.17 in the same period. Before this earnings report, the analysts had been forecasting revenues of RM6.57b and earnings per share (EPS) of RM0.16 in 2026. 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.

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 RM1.50. 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. There are some variant perceptions on Sports Toto Berhad, with the most bullish analyst valuing it at RM1.71 and the most bearish at RM1.39 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Sports Toto Berhad is an easy business to forecast or the the analysts are all using similar assumptions.

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. We would highlight that Sports Toto Berhad's revenue growth is expected to slow, with the forecast 2.8% annualised growth rate until the end of 2026 being well below the historical 9.3% 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 6.3% 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 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 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. The consensus price target held steady at RM1.50, with the latest estimates not enough to have an impact on their price targets.

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 estimates - from multiple Sports Toto Berhad analysts - going out to 2028, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Sports Toto Berhad 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.