Deleum Berhad Just Beat Revenue Estimates By 7.0%

Deleum Berhad (KLSE:DELEUM) defied analyst predictions to release its annual results, which were ahead of market expectations. Results were good overall, with revenues beating analyst predictions by 7.0% to hit RM792m. Statutory earnings per share (EPS) came in at RM0.11, some 4.5% above whatthe analysts had expected. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Deleum Berhad

Following last week's earnings report, Deleum Berhad's twin analysts are forecasting 2024 revenues to be RM801.7m, approximately in line with the last 12 months. Per-share earnings are expected to leap 21% to RM0.14. In the lead-up to this report, the analysts had been modelling revenues of RM790.3m and earnings per share (EPS) of RM0.12 in 2024. Although the revenue estimates have not really changed, we can see there's been a nice gain to earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 18% to RM1.41.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's also worth noting that the years of declining revenue look to have come to an end, with the forecast stauing flat to the end of 2024. Historically, Deleum Berhad's top line has shrunk approximately 0.4% annually over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 5.4% per year. Not only are Deleum Berhad's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Deleum Berhad's earnings potential next year. On the plus side, they made no changes to their revenue estimates - and they expect it to perform better than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Even so, be aware that Deleum Berhad is showing 1 warning sign in our investment analysis , you should know about...

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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.