Stock Analysis

United Malacca Berhad Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

KLSE:UMCCA
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United Malacca Berhad (KLSE:UMCCA) came out with its yearly 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 pretty mixed result, with revenues beating expectations to hit RM596m. Statutory earnings fell 9.6% short of analyst forecasts, reaching RM0.24 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for United Malacca Berhad

earnings-and-revenue-growth
KLSE:UMCCA Earnings and Revenue Growth July 1st 2024

Taking into account the latest results, United Malacca Berhad's twin analysts currently expect revenues in 2025 to be RM587.2m, approximately in line with the last 12 months. Per-share earnings are expected to leap 38% to RM0.33. Before this earnings report, the analysts had been forecasting revenues of RM586.5m and earnings per share (EPS) of RM0.33 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at RM5.72.

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 1.4% by the end of 2025. This indicates a significant reduction from annual growth of 20% 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 3.8% annually for the foreseeable future. It's pretty clear that United Malacca Berhad's revenues are expected to perform substantially worse than the wider 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, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that United Malacca Berhad's revenue is expected to perform worse 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for United Malacca Berhad 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.