This Broker Just Slashed Their Hume Cement Industries Berhad (KLSE:HUMEIND) Earnings Forecasts

The analyst covering Hume Cement Industries Berhad (KLSE:HUMEIND) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Both revenue and earnings per share (EPS) estimates were cut sharply as the analyst factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the latest downgrade, the current consensus, from the sole analyst covering Hume Cement Industries Berhad, is for revenues of RM1.1b in 2025, which would reflect a noticeable 4.5% reduction in Hume Cement Industries Berhad's sales over the past 12 months. Statutory earnings per share are supposed to shrink 4.4% to RM0.28 in the same period. Before this latest update, the analyst had been forecasting revenues of RM1.3b and earnings per share (EPS) of RM0.33 in 2025. Indeed, we can see that the analyst is a lot more bearish about Hume Cement Industries Berhad's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Hume Cement Industries Berhad

It'll come as no surprise then, to learn that the analyst has cut their price target 9.8% to RM4.60.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Hume Cement Industries Berhad's past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with a forecast 4.5% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 17% 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 2.2% annually for the foreseeable future. It's pretty clear that Hume Cement Industries Berhad's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest issue in the new estimates is that the analyst has reduced their earnings per share estimates, suggesting business headwinds lay ahead for Hume Cement Industries Berhad. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. After such a stark change in sentiment from the analyst, we'd understand if readers now felt a bit wary of Hume Cement Industries Berhad.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Hume Cement Industries Berhad going out as far as 2027, 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 downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.