Earnings Report: Hume Cement Industries Berhad Missed Revenue Estimates By 15%

Hume Cement Industries Berhad (KLSE:HUMEIND) came out with its yearly results last week, and we wanted to see how the business is performing and what industry forecasts think of the company following this report. Revenues were RM1.2b, 15% below analyst expectations, although losses didn't appear to worsen significantly, with a statutory per-share loss of RM0.36 being in line with what the analyst anticipated. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

See our latest analysis for Hume Cement Industries Berhad

After the latest results, the one analyst covering Hume Cement Industries Berhad are now predicting revenues of RM1.42b in 2025. If met, this would reflect a meaningful 18% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 24% to RM0.36. Before this earnings report, the analyst had been forecasting revenues of RM1.51b and earnings per share (EPS) of RM0.36 in 2025. So it looks like the analyst has become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

The analyst has also increased their price target 47% to RM5.40, clearly signalling that lower revenue forecasts next year are not expected to have a material impact on Hume Cement Industries Berhad's valuation.

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. The period to the end of 2025 brings more of the same, according to the analyst, with revenue forecast to display 18% growth on an annualised basis. That is in line with its 16% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 0.6% annually. So although Hume Cement Industries Berhad is expected to maintain its revenue growth rate, it's definitely expected to grow faster 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 analyst reconfirming that the business is performing in line with their previous earnings per share estimates. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. With that said, earnings are more important to the long-term value of the business. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Hume Cement Industries Berhad. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for Hume Cement Industries Berhad that you need to be mindful 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.