Earnings Miss: Fraser & Neave Holdings Bhd Missed EPS By 9.6% And Analysts Are Revising Their Forecasts

Fraser & Neave Holdings Bhd (KLSE:F&N) just released its latest annual report and things are not looking great. Results look to have been somewhat negative - revenue fell 3.7% short of analyst estimates at RM5.2b, and statutory earnings of RM1.48 per share missed forecasts by 9.6%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Fraser & Neave Holdings Bhd after the latest results.

View our latest analysis for Fraser & Neave Holdings Bhd

Taking into account the latest results, the most recent consensus for Fraser & Neave Holdings Bhd from six analysts is for revenues of RM5.73b in 2025. If met, it would imply a notable 9.1% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 2.9% to RM1.52. Before this earnings report, the analysts had been forecasting revenues of RM5.78b and earnings per share (EPS) of RM1.72 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.

The consensus price target held steady at RM36.79, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Fraser & Neave Holdings Bhd at RM38.60 per share, while the most bearish prices it at RM34.97. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. The analysts are definitely expecting Fraser & Neave Holdings Bhd's growth to accelerate, with the forecast 9.1% annualised growth to the end of 2025 ranking favourably alongside historical growth of 6.2% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.5% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Fraser & Neave Holdings Bhd to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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 estimates - from multiple Fraser & Neave Holdings Bhd analysts - going out to 2027, and you can see them free on our platform here.

You can also see our analysis of Fraser & Neave Holdings Bhd's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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.