Press Metal Aluminium Holdings Berhad (KLSE:PMETAL) Yearly Results: Here's What Analysts Are Forecasting For This Year

Press Metal Aluminium Holdings Berhad (KLSE:PMETAL) last week reported its latest yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Results look mixed - while revenue fell marginally short of analyst estimates at RM14b, statutory earnings were in line with expectations, at RM0.15 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Press Metal Aluminium Holdings Berhad

Taking into account the latest results, the most recent consensus for Press Metal Aluminium Holdings Berhad from twelve analysts is for revenues of RM14.9b in 2024. If met, it would imply an okay 7.6% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 27% to RM0.19. In the lead-up to this report, the analysts had been modelling revenues of RM14.8b and earnings per share (EPS) of RM0.20 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at RM5.16, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 Press Metal Aluminium Holdings Berhad analyst has a price target of RM5.80 per share, while the most pessimistic values it at RM4.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. It's pretty clear that there is an expectation that Press Metal Aluminium Holdings Berhad's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 7.6% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. Compare this to the 36 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 6.3% per year. Factoring in the forecast slowdown in growth, it looks like Press Metal Aluminium Holdings Berhad is forecast to grow at about the same rate as 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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 Press Metal Aluminium Holdings Berhad. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Press Metal Aluminium Holdings Berhad going out to 2026, and you can see them free on our platform here..

Before you take the next step you should know about the 1 warning sign for Press Metal Aluminium Holdings Berhad that we have uncovered.

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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.