Hartalega Holdings Berhad Just Missed EPS By 11%: Here's What Analysts Think Will Happen Next

Shareholders might have noticed that Hartalega Holdings Berhad (KLSE:HARTA) filed its annual result this time last week. The early response was not positive, with shares down 8.8% to RM2.07 in the past week. It was not a great result overall. While revenues of RM2.6b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 11% to hit RM0.022 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

We've discovered 1 warning sign about Hartalega Holdings Berhad. View them for free.

Taking into account the latest results, the most recent consensus for Hartalega Holdings Berhad from 19 analysts is for revenues of RM2.95b in 2026. If met, it would imply a meaningful 14% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 125% to RM0.049. In the lead-up to this report, the analysts had been modelling revenues of RM3.01b and earnings per share (EPS) of RM0.061 in 2026. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.

See our latest analysis for Hartalega Holdings Berhad

The consensus price target fell 9.1% to RM2.51, with the weaker earnings outlook clearly leading valuation estimates. 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. There are some variant perceptions on Hartalega Holdings Berhad, with the most bullish analyst valuing it at RM4.00 and the most bearish at RM1.75 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. One thing stands out from these estimates, which is that Hartalega Holdings Berhad is forecast to grow faster in the future than it has in the past, with revenues expected to display 14% annualised growth until the end of 2026. If achieved, this would be a much better result than the 22% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 12% annually. So while Hartalega Holdings Berhad's revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Hartalega Holdings Berhad. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Hartalega Holdings Berhad's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Hartalega Holdings Berhad going out to 2028, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Hartalega Holdings Berhad .

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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.