Upgrade: The Latest Revenue Forecasts For Hume Cement Industries Berhad (KLSE:HUMEIND)

Hume Cement Industries Berhad (KLSE:HUMEIND) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. The analyst has sharply increased their revenue numbers, with a view that Hume Cement Industries Berhad will make substantially more sales than they'd previously expected. The stock price has risen 5.6% to RM2.26 over the past week, suggesting investors are becoming more optimistic. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

After this upgrade, Hume Cement Industries Berhad's solitary analyst is now forecasting revenues of RM1.4b in 2024. This would be a major 23% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to leap 31% to RM0.26. Prior to this update, the analyst had been forecasting revenues of RM1.2b and earnings per share (EPS) of RM0.25 in 2024. It seems analyst sentiment has certainly become more bullish on revenues, even though they haven't changed their view on earnings per share.

View our latest analysis for Hume Cement Industries Berhad

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. The analyst is definitely expecting Hume Cement Industries Berhad's growth to accelerate, with the forecast 23% annualised growth to the end of 2024 ranking favourably alongside historical growth of 10% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 2.7% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Hume Cement Industries Berhad is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with the analyst holding earnings per share steady, in line with previous estimates. Fortunately, the analyst also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that the analyst appears to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Hume Cement Industries Berhad.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Hume Cement Industries Berhad going out as far as 2026, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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.