Earnings Miss: Hibiscus Petroleum Berhad Missed EPS By 64% And Analysts Are Revising Their Forecasts

It's been a good week for Hibiscus Petroleum Berhad (KLSE:HIBISCS) shareholders, because the company has just released its latest annual results, and the shares gained 2.7% to RM1.54. Results overall were not great, with earnings of RM0.15 per share falling drastically short of analyst expectations. Meanwhile revenues hit RM2.3b and were slightly better than forecasts. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the four analysts covering Hibiscus Petroleum Berhad provided consensus estimates of RM2.02b revenue in 2026, which would reflect a not inconsiderable 13% decline over the past 12 months. Per-share earnings are expected to surge 59% to RM0.25. Before this earnings report, the analysts had been forecasting revenues of RM2.40b and earnings per share (EPS) of RM0.46 in 2026. Indeed, we can see that the analysts are a lot more bearish about Hibiscus Petroleum Berhad's prospects following the latest results, administering a real cut to revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for Hibiscus Petroleum Berhad

Despite the cuts to forecast earnings, there was no real change to the RM2.10 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Hibiscus Petroleum Berhad, with the most bullish analyst valuing it at RM2.93 and the most bearish at RM1.56 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 13% by the end of 2026. This indicates a significant reduction from annual growth of 27% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.2% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Hibiscus Petroleum Berhad is expected to lag the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Hibiscus Petroleum Berhad. 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. The consensus price target held steady at RM2.10, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Hibiscus Petroleum Berhad analysts - going out to 2028, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Hibiscus Petroleum Berhad 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.