Results: Paramount Corporation Berhad Exceeded Expectations And The Consensus Has Updated Its Estimates

Paramount Corporation Berhad (KLSE:PARAMON) just released its full-year report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 3.3% to hit RM1.0b. Paramount Corporation Berhad reported statutory earnings per share (EPS) RM0.13, which was a notable 19% above what the analysts had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Paramount Corporation Berhad

Taking into account the latest results, the consensus forecast from Paramount Corporation Berhad's dual analysts is for revenues of RM1.14b in 2024. This reflects a solid 12% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to sink 14% to RM0.13 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM1.15b and earnings per share (EPS) of RM0.12 in 2024. So the consensus seems to have become somewhat more optimistic on Paramount Corporation Berhad's earnings potential following these results.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 8.3% to RM1.24.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Paramount Corporation Berhad'shistorical trends, as the 12% annualised revenue growth to the end of 2024 is roughly in line with the 13% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 9.1% annually. So it's pretty clear that Paramount Corporation Berhad is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Paramount Corporation Berhad following these results. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Paramount Corporation Berhad 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.