Scientex Berhad Just Beat Revenue By 7.4%: Here's What Analysts Think Will Happen Next

Investors in Scientex Berhad (KLSE:SCIENTX) had a good week, as its shares rose 8.1% to close at RM4.13 following the release of its first-quarter results. Results overall were respectable, with statutory earnings of RM0.28 per share roughly in line with what the analysts had forecast. Revenues of RM1.1b came in 7.4% ahead of analyst predictions. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Scientex Berhad after the latest results.

Check out our latest analysis for Scientex Berhad

Taking into account the latest results, the consensus forecast from Scientex Berhad's seven analysts is for revenues of RM4.54b in 2024. This reflects an okay 6.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 9.7% to RM0.36. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM4.54b and earnings per share (EPS) of RM0.35 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at RM4.12. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Scientex Berhad analyst has a price target of RM4.58 per share, while the most pessimistic values it at RM3.68. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Scientex Berhad's rate of growth is expected to accelerate meaningfully, with the forecast 8.6% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 6.6% p.a. 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 5.2% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Scientex Berhad is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at RM4.12, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Scientex Berhad analysts - going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Scientex Berhad that 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.