Ibraco Berhad Just Missed EPS By 5.3%: Here's What Analysts Think Will Happen Next

The full-year results for Ibraco Berhad (KLSE:IBRACO) were released last week, making it a good time to revisit its performance. Results were mixed, with revenues of RM392m exceeding expectations, even as earnings per share (EPS) came up short. Statutory earnings were RM0.084 per share, -5.3% below whatthe analyst had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

View our latest analysis for Ibraco Berhad

Taking into account the latest results, the consensus forecast from Ibraco Berhad's sole analyst is for revenues of RM430.1m in 2024. This reflects a decent 9.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 4.4% to RM0.088. In the lead-up to this report, the analyst had been modelling revenues of RM442.7m and earnings per share (EPS) of RM0.10 in 2024. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.

The average price target climbed 14% to RM1.16despite the reduced earnings forecasts, suggesting that this earnings impact could be a positive for the stock, once it passes.

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. The analyst is definitely expecting Ibraco Berhad's growth to accelerate, with the forecast 9.8% annualised growth to the end of 2024 ranking favourably alongside historical growth of 1.4% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 9.1% per year. Ibraco Berhad is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Ibraco Berhad. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Ibraco Berhad going out as far as 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 3 warning signs for Ibraco Berhad (1 is concerning!) that you need to be mindful 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.