UEM Sunrise Berhad Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

UEM Sunrise Berhad (KLSE:UEMS) defied analyst predictions to release its annual results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 3.2% to hit RM1.3b. UEM Sunrise Berhad also reported a statutory profit of RM0.021, which was an impressive 25% above what the analysts had forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for UEM Sunrise Berhad

Taking into account the latest results, the most recent consensus for UEM Sunrise Berhad from seven analysts is for revenues of RM1.56b in 2025. If met, it would imply a meaningful 17% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to climb 12% to RM0.023. Before this earnings report, the analysts had been forecasting revenues of RM1.52b and earnings per share (EPS) of RM0.019 in 2025. So it seems there's been a definite increase in optimism about UEM Sunrise Berhad's future following the latest results, with a great increase in the earnings per share forecasts in particular.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of RM1.00, suggesting that the forecast performance does not have a long term impact on the company's valuation. 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. Currently, the most bullish analyst values UEM Sunrise Berhad at RM1.60 per share, while the most bearish prices it at RM0.70. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. For example, we noticed that UEM Sunrise Berhad's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 17% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 12% 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 7.5% per year. Not only are UEM Sunrise 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 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 UEM Sunrise Berhad following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at RM1.00, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple UEM Sunrise Berhad analysts - going out to 2027, and you can see them free on our platform here.

It might also be worth considering whether UEM Sunrise Berhad's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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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.