Ta Ann Holdings Berhad Just Beat Revenue Estimates By 7.4%

The third-quarter results for Ta Ann Holdings Berhad (KLSE:TAANN) were released last week, making it a good time to revisit its performance. Results overall were respectable, with statutory earnings of RM0.42 per share roughly in line with what the analysts had forecast. Revenues of RM502m came in 7.4% ahead of analyst predictions. 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.

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Following last week's earnings report, Ta Ann Holdings Berhad's seven analysts are forecasting 2026 revenues to be RM1.79b, approximately in line with the last 12 months. Statutory earnings per share are predicted to rise 9.9% to RM0.46. In the lead-up to this report, the analysts had been modelling revenues of RM1.77b and earnings per share (EPS) of RM0.45 in 2026. So the consensus seems to have become somewhat more optimistic on Ta Ann Holdings Berhad's earnings potential following these results.

See our latest analysis for Ta Ann Holdings Berhad

The consensus price target was unchanged at RM4.85, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. Currently, the most bullish analyst values Ta Ann Holdings Berhad at RM6.85 per share, while the most bearish prices it at RM3.90. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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 0.7% by the end of 2026. This indicates a significant reduction from annual growth of 2.9% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 2.9% annually for the foreseeable future. It's pretty clear that Ta Ann Holdings Berhad's revenues are expected to perform substantially worse 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 Ta Ann Holdings Berhad following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Ta Ann Holdings Berhad's revenue is expected to perform worse than the wider industry. The consensus price target held steady at RM4.85, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Ta Ann Holdings Berhad. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Ta Ann Holdings Berhad analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Ta Ann Holdings Berhad has 1 warning sign we think you should be aware 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.