Analyst Estimates: Here's What Brokers Think Of Dialog Group Berhad (KLSE:DIALOG) After Its Annual Report

It's been a good week for Dialog Group Berhad (KLSE:DIALOG) shareholders, because the company has just released its latest annual results, and the shares gained 2.9% to RM2.49. It was a credible result overall, with revenues of RM3.2b and statutory earnings per share of RM0.10 both in line with analyst estimates, showing that Dialog Group Berhad is executing in line with expectations. 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 Dialog Group Berhad after the latest results.

View our latest analysis for Dialog Group Berhad

After the latest results, the 13 analysts covering Dialog Group Berhad are now predicting revenues of RM3.31b in 2025. If met, this would reflect a reasonable 5.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 12% to RM0.11. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM3.32b and earnings per share (EPS) of RM0.11 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of RM2.87, suggesting that the company has met expectations in its recent result. 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. The most optimistic Dialog Group Berhad analyst has a price target of RM3.37 per share, while the most pessimistic values it at RM2.15. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. It's pretty clear that there is an expectation that Dialog Group Berhad's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 5.1% growth on an annualised basis. This is compared to a historical growth rate of 9.5% 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. So it's clear that despite the slowdown in growth, Dialog Group Berhad is still expected to grow meaningfully faster than the wider industry.

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, they also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Their estimates also suggest that Dialog Group Berhad's revenue is expected to perform better than the wider industry. The consensus price target held steady at RM2.87, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Dialog Group Berhad. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Dialog Group Berhad analysts - going out to 2027, and you can see them free on our platform here.

You can also view our analysis of Dialog Group Berhad's balance sheet, and whether we think Dialog Group Berhad is carrying too much debt, for free on our platform here.

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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.