Earnings Miss: Malaysia Smelting Corporation Berhad Missed EPS By 11% And Analysts Are Revising Their Forecasts

Malaysia Smelting Corporation Berhad (KLSE:MSC) came out with its yearly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Results were mixed, with revenues of RM1.4b exceeding expectations, even as earnings per share (EPS) came up short. Statutory earnings were RM0.20 per share, -11% below whatthe analysts had forecast. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Malaysia Smelting Corporation Berhad

Taking into account the latest results, the most recent consensus for Malaysia Smelting Corporation Berhad from three analysts is for revenues of RM1.55b in 2024. If met, it would imply an okay 7.7% increase on its revenue over the past 12 months. Per-share earnings are expected to swell 17% to RM0.24. In the lead-up to this report, the analysts had been modelling revenues of RM1.46b and earnings per share (EPS) of RM0.25 in 2024. So it's pretty clear consensus is mixed on Malaysia Smelting Corporation Berhad after the latest results; whilethe analysts lifted revenue numbers, they also administered a small dip in per-share earnings expectations.

The consensus price target was unchanged at RM2.07, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Malaysia Smelting Corporation Berhad analyst has a price target of RM2.39 per share, while the most pessimistic values it at RM1.80. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. We can infer from the latest estimates that forecasts expect a continuation of Malaysia Smelting Corporation Berhad'shistorical trends, as the 7.7% annualised revenue growth to the end of 2024 is roughly in line with the 7.8% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 5.4% per year. So although Malaysia Smelting Corporation 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 the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Malaysia Smelting Corporation Berhad. Long-term earnings power is much more important than next year's profits. We have forecasts for Malaysia Smelting Corporation Berhad going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Malaysia Smelting Corporation Berhad you should be aware 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.