IOI Corporation Berhad Just Missed EPS By 27%: Here's What Analysts Think Will Happen Next

The quarterly results for IOI Corporation Berhad (KLSE:IOICORP) were released last week, making it a good time to revisit its performance. Results were mixed, with revenues of RM2.7b exceeding expectations, even as statutory earnings per share (EPS) fell badly short. Earnings were RM0.042 per share, -27% short of analyst expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Following the recent earnings report, the consensus from 16 analysts covering IOI Corporation Berhad is for revenues of RM10.5b in 2026. This implies a small 3.8% decline in revenue compared to the last 12 months. Statutory earnings per share are forecast to reduce 7.3% to RM0.21 in the same period. Before this earnings report, the analysts had been forecasting revenues of RM10.5b and earnings per share (EPS) of RM0.22 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

See our latest analysis for IOI Corporation Berhad

The consensus price target held steady at RM4.07, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic IOI Corporation Berhad analyst has a price target of RM4.60 per share, while the most pessimistic values it at RM3.50. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 3.1% by the end of 2026. This indicates a significant reduction from annual growth of 1.8% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 2.7% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - IOI Corporation Berhad is expected to lag 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that IOI Corporation Berhad's revenue is expected to perform worse than the wider industry. The consensus price target held steady at RM4.07, with the latest estimates not enough to have an impact on their price targets.

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 estimates - from multiple IOI Corporation Berhad analysts - going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for IOI Corporation Berhad you should be aware of, and 1 of them shouldn't be ignored.

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.