Tambun Indah Land Berhad Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

It's shaping up to be a tough period for Tambun Indah Land Berhad (KLSE:TAMBUN), which a week ago released some disappointing annual results that could have a notable impact on how the market views the stock. Tambun Indah Land Berhad missed earnings this time around, with RM204m revenue coming in 5.7% below what the analysts had modelled. Statutory earnings per share (EPS) of RM0.093 also fell short of expectations by 17%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Tambun Indah Land Berhad

Following the latest results, Tambun Indah Land Berhad's three analysts are now forecasting revenues of RM222.2m in 2024. This would be a notable 8.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 26% to RM0.12. Before this earnings report, the analysts had been forecasting revenues of RM231.5m and earnings per share (EPS) of RM0.13 in 2024. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the RM0.91 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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 Tambun Indah Land Berhad, with the most bullish analyst valuing it at RM0.95 and the most bearish at RM0.88 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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 Tambun Indah Land Berhad'shistorical trends, as the 8.7% annualised revenue growth to the end of 2024 is roughly in line with the 11% 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. It's clear that while Tambun Indah Land Berhad's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target held steady at RM0.91, with the latest estimates not enough to have an impact on their price targets.

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 estimates - from multiple Tambun Indah Land Berhad analysts - going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Tambun Indah Land Berhad .

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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.