The Nestlé (Malaysia) Berhad (KLSE:NESTLE) First-Quarter Results Are Out And Analysts Have Published New Forecasts

As you might know, Nestlé (Malaysia) Berhad (KLSE:NESTLE) recently reported its first-quarter numbers. Nestlé (Malaysia) Berhad reported in line with analyst predictions, delivering revenues of RM1.8b and statutory earnings per share of RM2.81, suggesting the business is executing well and in line with its plan. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Nestlé (Malaysia) Berhad

After the latest results, the twelve analysts covering Nestlé (Malaysia) Berhad are now predicting revenues of RM7.26b in 2024. If met, this would reflect an okay 3.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 16% to RM3.25. In the lead-up to this report, the analysts had been modelling revenues of RM7.26b and earnings per share (EPS) of RM3.24 in 2024. 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.

The analysts reconfirmed their price target of RM129, showing that the business is executing well and in line with expectations. 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 Nestlé (Malaysia) Berhad at RM146 per share, while the most bearish prices it at RM115. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 5.1% growth on an annualised basis. That is in line with its 6.2% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 4.3% per year. So although Nestlé (Malaysia) Berhad is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Nestlé (Malaysia) Berhad going out to 2026, and you can see them free on our platform here..

Plus, you should also learn about the 2 warning signs we've spotted with Nestlé (Malaysia) Berhad .

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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.