Velesto Energy Berhad Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Velesto Energy Berhad (KLSE:VELESTO) defied analyst predictions to release its yearly results, which were ahead of market expectations. Velesto Energy Berhad delivered a significant beat to revenue and earnings per share (EPS) expectations, hitting RM1.2b-17% above indicated-andRM0.012-59% above forecasts- respectively 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Velesto Energy Berhad

Taking into account the latest results, Velesto Energy Berhad's seven analysts currently expect revenues in 2024 to be RM1.22b, approximately in line with the last 12 months. Statutory earnings per share are predicted to soar 61% to RM0.019. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM1.18b and earnings per share (EPS) of RM0.018 in 2024. 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.

It will come as no surprise to learn that the analysts have increased their price target for Velesto Energy Berhad 5.9% to RM0.32on the back of these upgrades. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Velesto Energy Berhad, with the most bullish analyst valuing it at RM0.35 and the most bearish at RM0.28 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. We would highlight that Velesto Energy Berhad's revenue growth is expected to slow, with the forecast 0.06% annualised growth rate until the end of 2024 being well below the historical 9.0% p.a. growth over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 5.7% per year. So it's clear that despite the slowdown in growth, Velesto Energy Berhad is still expected to grow meaningfully faster 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 Velesto Energy 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 also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 Velesto Energy Berhad analysts - going out to 2026, and you can see them free on our platform here.

You can also view our analysis of Velesto Energy Berhad's balance sheet, and whether we think Velesto Energy 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.