Farm Fresh Berhad Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Farm Fresh Berhad (KLSE:FFB) defied analyst predictions to release its quarterly results, which were ahead of market expectations. The company beat expectations with revenues of RM295m arriving 6.7% ahead of forecasts. Statutory earnings per share (EPS) were RM0.019, 9.6% ahead of estimates. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the most recent consensus for Farm Fresh Berhad from 13 analysts is for revenues of RM1.16b in 2026. If met, it would imply a decent 11% increase on its revenue over the past 12 months. Per-share earnings are expected to ascend 14% to RM0.075. In the lead-up to this report, the analysts had been modelling revenues of RM1.15b and earnings per share (EPS) of RM0.074 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

Check out our latest analysis for Farm Fresh Berhad

The consensus price target rose 14% to RM2.72despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Farm Fresh Berhad's earnings by assigning a price premium. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Farm Fresh Berhad at RM3.03 per share, while the most bearish prices it at RM1.95. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. We can infer from the latest estimates that forecasts expect a continuation of Farm Fresh Berhad'shistorical trends, as the 23% annualised revenue growth to the end of 2026 is roughly in line with the 21% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 2.9% annually. So it's pretty clear that Farm Fresh Berhad is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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 in mind, we wouldn't be too quick to come to a conclusion on Farm Fresh Berhad. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Farm Fresh Berhad analysts - going out to 2028, and you can see them free on our platform here.

It might also be worth considering whether Farm Fresh Berhad's debt load is appropriate, using our debt analysis tools on the Simply Wall St 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.