Stock Analysis

Earnings Beat: Keyfield International Berhad Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

KLSE:KEYFIELD
Source: Shutterstock

Keyfield International Berhad (KLSE:KEYFIELD) investors will be delighted, with the company turning in some strong numbers with its latest results. Keyfield International Berhad delivered a significant beat to revenue and earnings per share (EPS) expectations, hitting RM687m-20% above indicated-andRM0.31-28% above forecasts- respectively The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Keyfield International Berhad

earnings-and-revenue-growth
KLSE:KEYFIELD Earnings and Revenue Growth March 2nd 2025

Following last week's earnings report, Keyfield International Berhad's dual analysts are forecasting 2025 revenues to be RM674.3m, approximately in line with the last 12 months. Statutory earnings per share are predicted to rise 7.7% to RM0.30. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM654.3m and earnings per share (EPS) of RM0.29 in 2025. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

Despite these upgrades,the analysts have not made any major changes to their price target of RM3.24, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 1.9% annualised decline to the end of 2025. That is a notable change from historical growth of 42% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 5.5% annually for the foreseeable future. So it's pretty clear that Keyfield International Berhad's revenues are expected to shrink slower than 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 Keyfield International Berhad following these results. Fortunately, they also upgraded their revenue estimates, and our data indicates it is expected to perform better than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 Keyfield International Berhad going out as far as 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

Valuation is complex, but we're here to simplify it.

Discover if Keyfield International Berhad might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

Access Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.