UEM Sunrise Berhad (KLSE:UEMS) Full-Year Results: Here's What Analysts Are Forecasting For This Year

Last week saw the newest yearly earnings release from UEM Sunrise Berhad (KLSE:UEMS), an important milestone in the company's journey to build a stronger business. Revenues came in 23% better than analyst models expected, at RM1.1b, although statutory losses ballooned 1,586% to RM0.055, which is much worse than what was 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for UEM Sunrise Berhad

Taking into account the latest results, the most recent consensus for UEM Sunrise Berhad from nine analysts is for revenues of RM1.31b in 2021 which, if met, would be a solid 15% increase on its sales over the past 12 months. Earnings are expected to improve, with UEM Sunrise Berhad forecast to report a statutory profit of RM0.014 per share. In the lead-up to this report, the analysts had been modelling revenues of RM1.31b and earnings per share (EPS) of RM0.017 in 2021. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a real cut to EPS estimates.

The consensus price target held steady at RM0.46, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 UEM Sunrise Berhad, with the most bullish analyst valuing it at RM0.55 and the most bearish at RM0.40 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the UEM Sunrise Berhad's past performance and to peers in the same industry. The analysts are definitely expecting UEM Sunrise Berhad's growth to accelerate, with the forecast 15% annualised growth to the end of 2021 ranking favourably alongside historical growth of 3.6% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.0% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect UEM Sunrise Berhad to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for UEM Sunrise Berhad. 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 RM0.46, 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. At Simply Wall St, we have a full range of analyst estimates for UEM Sunrise Berhad going out to 2023, and you can see them free on our platform here..

Even so, be aware that UEM Sunrise Berhad is showing 2 warning signs in our investment analysis , and 1 of those is concerning...

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This article by Simply Wall St is general in nature. 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.
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