TSH Resources Berhad Just Recorded A 99,901% Revenue Beat: Here's What Analysts Think

Last week saw the newest half-yearly earnings release from TSH Resources Berhad (KLSE:TSH), an important milestone in the company's journey to build a stronger business. Revenue of RM495b came in a notable 99,901% ahead of expectations, while statutory earnings of RM0.069 were in line with what the analysts had been forecasting. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for TSH Resources Berhad

Taking into account the latest results, the most recent consensus for TSH Resources Berhad from nine analysts is for revenues of RM1.09b in 2024. If met, it would imply a modest 3.8% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 8.4% to RM0.075. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM1.11b and earnings per share (EPS) of RM0.074 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 RM1.15, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic TSH Resources Berhad analyst has a price target of RM1.30 per share, while the most pessimistic values it at RM1.02. This is a very narrow spread of estimates, implying either that TSH Resources Berhad is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of TSH Resources Berhad'shistorical trends, as the 7.7% annualised revenue growth to the end of 2024 is roughly in line with the 8.6% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.4% annually. So it's pretty clear that TSH Resources Berhad is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider 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 in mind, we wouldn't be too quick to come to a conclusion on TSH Resources Berhad. Long-term earnings power is much more important than next year's profits. We have forecasts for TSH Resources Berhad going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for TSH Resources Berhad that you need to take into consideration.

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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.