Bursa Malaysia Berhad Just Missed EPS By 22%: Here's What Analysts Think Will Happen Next

Bursa Malaysia Berhad (KLSE:BURSA) missed earnings with its latest second-quarter results, disappointing overly-optimistic forecasters. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at RM173m, statutory earnings missed forecasts by an incredible 22%, coming in at just RM0.071 per share. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following the recent earnings report, the consensus from 16 analysts covering Bursa Malaysia Berhad is for revenues of RM716.9m in 2025. This implies a noticeable 4.6% decline in revenue compared to the last 12 months. Statutory earnings per share are expected to reduce 5.6% to RM0.33 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM727.2m and earnings per share (EPS) of RM0.34 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 small dip in their earnings per share forecasts.

See our latest analysis for Bursa Malaysia Berhad

The consensus price target held steady at RM7.99, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Bursa Malaysia Berhad at RM9.33 per share, while the most bearish prices it at RM6.65. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. Over the past five years, revenues have declined around 1.2% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 8.9% decline in revenue until the end of 2025. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 6.9% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect Bursa Malaysia Berhad to suffer worse 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Bursa 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Bursa Malaysia Berhad going out to 2027, and you can see them free on our platform here..

You still need to take note of risks, for example - Bursa 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.