Earnings Miss: Bursa Malaysia Berhad Missed EPS By 6.2% And Analysts Are Revising Their Forecasts

It's shaping up to be a tough period for Bursa Malaysia Berhad (KLSE:BURSA), which a week ago released some disappointing first-quarter results that could have a notable impact on how the market views the stock. Bursa Malaysia Berhad missed analyst forecasts, with revenues of RM184m and statutory earnings per share (EPS) of RM0.085, falling short by 4.1% and 6.2% respectively. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Bursa Malaysia Berhad after the latest results.

Our free stock report includes 1 warning sign investors should be aware of before investing in Bursa Malaysia Berhad. Read for free now.

Taking into account the latest results, the current consensus, from the 16 analysts covering Bursa Malaysia Berhad, is for revenues of RM728.4m in 2025. This implies a perceptible 6.5% reduction in Bursa Malaysia Berhad's revenue over the past 12 months. Statutory earnings per share are forecast to dip 9.1% to RM0.34 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM765.7m and earnings per share (EPS) of RM0.38 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

View our latest analysis for Bursa Malaysia Berhad

It'll come as no surprise then, to learn that the analysts have cut their price target 11% to RM8.07. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Bursa Malaysia Berhad at RM9.33 per share, while the most bearish prices it at RM6.75. 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. Over the past five years, revenues have declined around 0.3% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 8.5% decline in revenue until the end of 2025. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 7.4% annually. So while a broad number of companies are forecast to grow, unfortunately Bursa Malaysia Berhad is expected to see its revenue affected worse than other companies in the 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. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. 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..

We don't want to rain on the parade too much, but we did also find 1 warning sign for Bursa Malaysia Berhad that you need to be mindful 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.