Results: IOI Corporation Berhad Beat Earnings Expectations And Analysts Now Have New Forecasts

IOI Corporation Berhad (KLSE:IOICORP) investors will be delighted, with the company turning in some strong numbers with its latest results. It was overall a positive result, with revenues beating expectations by 2.5% to hit RM11b. IOI Corporation Berhad also reported a statutory profit of RM0.25, which was an impressive 21% above what the analysts had forecast. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the current consensus, from the 15 analysts covering IOI Corporation Berhad, is for revenues of RM10.9b in 2026. This implies a noticeable 4.0% reduction in IOI Corporation Berhad's revenue over the past 12 months. Statutory earnings per share are expected to descend 15% to RM0.21 in the same period. Before this earnings report, the analysts had been forecasting revenues of RM10.6b and earnings per share (EPS) of RM0.21 in 2026. So it's pretty clear consensus is mixed on IOI Corporation Berhad after the latest results; whilethe analysts lifted revenue numbers, they also administered a small dip in per-share earnings expectations.

See our latest analysis for IOI Corporation Berhad

There's been no major changes to the price target of RM4.04, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation. 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. The most optimistic IOI Corporation Berhad analyst has a price target of RM4.60 per share, while the most pessimistic values it at RM3.53. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. One more thing stood out to us about these estimates, and it's the idea that IOI Corporation Berhad's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 4.0% to the end of 2026. This tops off a historical decline of 0.01% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 2.2% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect IOI Corporation Berhad to suffer worse 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 upgraded their revenue estimates, although our data indicates it is expected to perform worse 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 IOI Corporation Berhad analysts - going out to 2028, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with IOI Corporation Berhad (at least 1 which shouldn't be ignored) , and understanding these should be part of your investment process.

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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.