Deleum Berhad (KLSE:DELEUM) Exceeded Expectations And The Analyst Consensus Has Been Reviewing Its Models

Deleum Berhad (KLSE:DELEUM) investors will be delighted, with the company turning in some strong numbers with its latest results. Deleum Berhad delivered a significant beat to revenue and earnings per share (EPS) expectations, with sales hitting RM698m and statutory EPS reaching RM0.10, both beating estimates by more than 10%. 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.

See our latest analysis for Deleum Berhad

Taking into account the latest results, the current consensus from Deleum Berhad's two analysts is for revenues of RM736.7m in 2023, which would reflect a satisfactory 5.5% increase on its sales over the past 12 months. Per-share earnings are expected to jump 38% to RM0.14. In the lead-up to this report, the analysts had been modelling revenues of RM620.8m and earnings per share (EPS) of RM0.094 in 2023. So we can see there's been a pretty clear increase in sentiment following the latest results, with both revenues and earnings per share receiving a decent lift in the latest estimates.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 9.6% to RM1.10per share.

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. One thing stands out from these estimates, which is that Deleum Berhad is forecast to grow faster in the future than it has in the past, with revenues expected to display 5.5% annualised growth until the end of 2023. If achieved, this would be a much better result than the 1.7% annual decline 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 grow 5.0% per year. So it looks like Deleum Berhad is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Deleum Berhad following these results. They also upgraded their revenue forecasts, although the latest estimates suggest that Deleum Berhad will grow in line with the overall 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Deleum Berhad going out as far as 2025, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Deleum Berhad 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.