Supermax Corporation Berhad (KLSE:SUPERMX) Just Reported And Analysts Have Been Cutting Their Estimates

As you might know, Supermax Corporation Berhad (KLSE:SUPERMX) last week released its latest full-year, and things did not turn out so great for shareholders. It was a pretty negative result overall, with revenues of RM782m missing analyst predictions by 8.1%. Worse, the business reported a statutory loss of RM0.052 per share, much larger than the analysts had forecast prior to the result. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Taking into account the latest results, the consensus forecast from Supermax Corporation Berhad's five analysts is for revenues of RM913.7m in 2026. This reflects a meaningful 17% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 83% to RM0.009. Yet prior to the latest earnings, the analysts had been forecasting revenues of RM1.01b and losses of RM0.0013 per share in 2026. While this year's revenue estimates dropped there was also a massive increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

Check out our latest analysis for Supermax Corporation Berhad

The consensus price target fell 30% to RM0.49, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Supermax Corporation Berhad, with the most bullish analyst valuing it at RM0.53 and the most bearish at RM0.43 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Supermax Corporation Berhad's past performance and to peers in the same industry. One thing stands out from these estimates, which is that Supermax Corporation Berhad is forecast to grow faster in the future than it has in the past, with revenues expected to display 17% annualised growth until the end of 2026. If achieved, this would be a much better result than the 43% 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 13% annually. Not only are Supermax Corporation Berhad's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. They also downgraded Supermax Corporation Berhad's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Supermax Corporation Berhad going out to 2028, and you can see them free on our platform here.

You can also see our analysis of Supermax Corporation Berhad's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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.