UOA Development Bhd Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

UOA Development Bhd (KLSE:UOADEV) just released its annual report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 4.7% to hit RM546m. UOA Development Bhd also reported a statutory profit of RM0.11, which was an impressive 23% above what the analysts had forecast. 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.

Check out our latest analysis for UOA Development Bhd

Taking into account the latest results, the consensus forecast from UOA Development Bhd's five analysts is for revenues of RM632.7m in 2025. This reflects a solid 16% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be RM0.11, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM631.5m and earnings per share (EPS) of RM0.10 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at RM1.93, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on UOA Development Bhd, with the most bullish analyst valuing it at RM2.10 and the most bearish at RM1.71 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. One thing stands out from these estimates, which is that UOA Development Bhd is forecast to grow faster in the future than it has in the past, with revenues expected to display 16% annualised growth until the end of 2025. If achieved, this would be a much better result than the 23% annual decline 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 6.7% per year. Not only are UOA Development Bhd'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 biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around UOA Development Bhd's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at RM1.93, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on UOA Development Bhd. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for UOA Development Bhd going out to 2027, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for UOA Development Bhd that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.