Party Time: Brokers Just Made Major Increases To Their Keyfield International Berhad (KLSE:KEYFIELD) Earnings Forecasts

Celebrations may be in order for Keyfield International Berhad (KLSE:KEYFIELD) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

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Following the upgrade, the latest consensus from Keyfield International Berhad's dual analysts is for revenues of RM723m in 2025, which would reflect a substantial 20% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to surge 20% to RM0.32. Previously, the analysts had been modelling revenues of RM631m and earnings per share (EPS) of RM0.28 in 2025. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

View our latest analysis for Keyfield International Berhad

Despite these upgrades, the consensus price target fell 13% to RM2.44, perhaps signalling that the uplift in performance is not expected to last.

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 clear from the latest estimates that Keyfield International Berhad's rate of growth is expected to accelerate meaningfully, with the forecast 20% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.6% over the past year. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue shrink 1.6% per year. So it's clear with the acceleration in growth, Keyfield International Berhad is expected to grow meaningfully faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, they also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. A lower price target is not intuitively what we would expect from a company whose business prospects are improving - at least judging by these forecasts - but if the underlying fundamentals are strong, Keyfield International Berhad could be one for the watch list.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 2 potential warning sign with Keyfield International Berhad, including concerns around earnings quality. For more information, you can click through to our platform to learn more about this and the 1 other warning sign we've identified .

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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.