One Analyst's Earnings Estimates For Malayan Flour Mills Berhad (KLSE:MFLOUR) Are Surging Higher

Malayan Flour Mills Berhad (KLSE:MFLOUR) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. The analyst greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Following the upgrade, the most recent consensus for Malayan Flour Mills Berhad from its solo analyst is for revenues of RM2.8b in 2022 which, if met, would be a decent 14% increase on its sales over the past 12 months. Per-share earnings are expected to bounce 133% to RM0.083. Prior to this update, the analyst had been forecasting revenues of RM2.5b and earnings per share (EPS) of RM0.069 in 2022. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

View our latest analysis for Malayan Flour Mills Berhad

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 analyst is definitely expecting Malayan Flour Mills Berhad's growth to accelerate, with the forecast 14% annualised growth to the end of 2022 ranking favourably alongside historical growth of 2.0% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 0.6% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Malayan Flour Mills Berhad is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that the analyst upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, the analyst also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. More bullish expectations could be a signal for investors to take a closer look at Malayan Flour Mills Berhad.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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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.