Brokers Are Upgrading Their Views On United Malacca Berhad (KLSE:UMCCA) With These New Forecasts

Celebrations may be in order for United Malacca Berhad (KLSE:UMCCA) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects.

Following the upgrade, the latest consensus from United Malacca Berhad's three analysts is for revenues of RM512m in 2022, which would reflect a solid 8.5% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to jump 66% to RM0.47. Before this latest update, the analysts had been forecasting revenues of RM440m and earnings per share (EPS) of RM0.29 in 2022. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

View our latest analysis for United Malacca Berhad

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the United Malacca Berhad's past performance and to peers in the same industry. It's pretty clear that there is an expectation that United Malacca Berhad's revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 8.5% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 1.4% annually. So it's pretty clear that, while United Malacca Berhad's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. More bullish expectations could be a signal for investors to take a closer look at United Malacca Berhad.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple United Malacca Berhad analysts - going out to 2024, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.