Stock Analysis

This Analyst Just Made A Sizeable Upgrade To Their Eastern & Oriental Berhad (KLSE:E&O) Earnings Forecasts

KLSE:E&O
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Eastern & Oriental Berhad (KLSE:E&O) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analyst modelling a real improvement in business performance.

After the upgrade, the single analyst covering Eastern & Oriental Berhad is now predicting revenues of RM658m in 2025. If met, this would reflect a credible 5.2% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to surge 54% to RM0.10. Previously, the analyst had been modelling revenues of RM581m and earnings per share (EPS) of RM0.08 in 2025. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

See our latest analysis for Eastern & Oriental Berhad

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KLSE:E&O Earnings and Revenue Growth March 4th 2025

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Eastern & Oriental Berhad's past performance and to peers in the same industry. The period to the end of 2025 brings more of the same, according to the analyst, with revenue forecast to display 5.2% growth on an annualised basis. That is in line with its 4.8% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 6.3% annually. So although Eastern & Oriental Berhad is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that the analyst upgraded their earnings per share estimates, with improved earnings power expected for this year. Pleasantly, the analyst also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. More bullish expectations could be a signal for investors to take a closer look at Eastern & Oriental Berhad.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Eastern & Oriental Berhad going out as far as 2027, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

Valuation is complex, but we're here to simplify it.

Discover if Eastern & Oriental Berhad might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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.

About KLSE:E&O

Eastern & Oriental Berhad

An investment holding company, invests in, develops, and manages residential and commercial properties in Malaysia and the United Kingdom.

Fair value with moderate growth potential.