IOI Corporation Berhad Just Missed Earnings And Its Revenue Numbers Were Weaker Than Expected

IOI Corporation Berhad (KLSE:IOICORP) missed earnings with its latest yearly results, disappointing overly-optimistic forecasters. IOI Corporation Berhad reported an earnings miss, with RM9.6b revenues falling 10% short of analyst models, and statutory earnings per share (EPS) of RM0.18 also coming in slightly below expectations. 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.

View our latest analysis for IOI Corporation Berhad

Taking into account the latest results, the consensus forecast from IOI Corporation Berhad's 16 analysts is for revenues of RM10.9b in 2025. This reflects a solid 14% improvement in revenue compared to the last 12 months. Per-share earnings are expected to climb 12% to RM0.20. In the lead-up to this report, the analysts had been modelling revenues of RM10.9b and earnings per share (EPS) of RM0.21 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

The consensus price target held steady at RM4.08, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic IOI Corporation Berhad analyst has a price target of RM4.50 per share, while the most pessimistic values it at RM3.25. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await IOI Corporation Berhad shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the IOI Corporation Berhad's past performance and to peers in the same industry. It's clear from the latest estimates that IOI Corporation Berhad's rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 8.2% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.3% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect IOI Corporation Berhad to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for IOI Corporation Berhad. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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.

With that in mind, we wouldn't be too quick to come to a conclusion on IOI Corporation Berhad. Long-term earnings power is much more important than next year's profits. We have forecasts for IOI Corporation Berhad going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for IOI Corporation Berhad that you need to take into consideration.

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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.