Results: Media Prima Berhad Exceeded Expectations And The Consensus Has Updated Its Estimates

Media Prima Berhad (KLSE:MEDIA) came out with its annual results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. The results were mixed; although revenues of RM844m fell 10% short of what the analysts had predicted, per-share (statutory) earnings of RM0.054 beat expectations by 113%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Media Prima Berhad

Taking into account the latest results, the current consensus from Media Prima Berhad's eight analysts is for revenues of RM993.0m in 2025. This would reflect a meaningful 18% increase on its revenue over the past 12 months. Statutory earnings per share are expected to plunge 33% to RM0.036 in the same period. Before this earnings report, the analysts had been forecasting revenues of RM1.00b and earnings per share (EPS) of RM0.032 in 2025. Although the revenue estimates have not really changed, we can see there's been a nice gain to earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 11% to RM0.44. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Media Prima Berhad, with the most bullish analyst valuing it at RM0.51 and the most bearish at RM0.31 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. For example, we noticed that Media Prima Berhad's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 18% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 3.1% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 7.9% per year. Not only are Media Prima Berhad's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Media Prima Berhad's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Media Prima 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 Media Prima Berhad going out to 2027, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 2 warning signs for Media Prima Berhad you should be aware of, and 1 of them is concerning.

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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.