Revenue Beat: SD Guthrie Berhad Exceeded Revenue Forecasts By 10% And Analysts Are Updating Their Estimates

SD Guthrie Berhad (KLSE:SDG) came out with its third-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It was a mildly positive result, with revenues exceeding expectations at RM5.3b, while statutory earnings per share (EPS) of RM0.27 were in line with analyst forecasts. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for SD Guthrie Berhad

Taking into account the latest results, the 17 analysts covering SD Guthrie Berhad provided consensus estimates of RM19.4b revenue in 2025, which would reflect a perceptible 2.3% decline over the past 12 months. Statutory per share are forecast to be RM0.23, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of RM18.7b and earnings per share (EPS) of RM0.22 in 2025. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of RM4.93, suggesting that the forecast performance does not have a long term impact on the company's valuation. 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 SD Guthrie Berhad at RM5.55 per share, while the most bearish prices it at RM4.15. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.9% by the end of 2025. This indicates a significant reduction from annual growth of 11% 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 3.8% per year. It's pretty clear that SD Guthrie Berhad's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around SD Guthrie Berhad's earnings potential next year. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. The consensus price target held steady at RM4.93, with the latest estimates not enough to have an impact on their price targets.

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 SD Guthrie Berhad going out to 2026, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 2 warning signs for SD Guthrie Berhad that you need to be mindful of.

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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.