Results: Sarawak Plantation Berhad Beat Earnings Expectations And Analysts Now Have New Forecasts

Shareholders might have noticed that Sarawak Plantation Berhad (KLSE:SWKPLNT) filed its full-year result this time last week. The early response was not positive, with shares down 4.5% to RM2.32 in the past week. The results were mixed; although revenues of RM551m fell 13% short of what the analysts had predicted, per-share (statutory) earnings of RM0.33 beat expectations by 40%. 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.

See our latest analysis for Sarawak Plantation Berhad

Following the latest results, Sarawak Plantation Berhad's three analysts are now forecasting revenues of RM607.8m in 2025. This would be a solid 10% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to shrink 3.0% to RM0.32 in the same period. In the lead-up to this report, the analysts had been modelling revenues of RM667.0m and earnings per share (EPS) of RM0.27 in 2025. Although the analysts have lowered their revenue forecasts, they've also made a substantial gain in their earnings per share estimates, which implies there's been something of an uptick in sentiment following the latest results.

There's been no real change to the average price target of RM2.71, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Sarawak Plantation Berhad analyst has a price target of RM2.94 per share, while the most pessimistic values it at RM2.15. This is a very narrow spread of estimates, implying either that Sarawak Plantation Berhad is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. The analysts are definitely expecting Sarawak Plantation Berhad's growth to accelerate, with the forecast 10% annualised growth to the end of 2025 ranking favourably alongside historical growth of 5.9% 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 4.1% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Sarawak Plantation Berhad to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Sarawak Plantation Berhad following these results. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Yet - earnings are more important to the intrinsic value of the business. The consensus price target held steady at RM2.71, with the latest estimates not enough to have an impact on their price targets.

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 forecasts for Sarawak Plantation Berhad going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Sarawak Plantation Berhad has 2 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

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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.