Bermaz Auto Berhad Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Last week saw the newest yearly earnings release from Bermaz Auto Berhad (KLSE:BAUTO), an important milestone in the company's journey to build a stronger business. The result was positive overall - although revenues of RM3.9b were in line with what the analysts predicted, Bermaz Auto Berhad surprised by delivering a statutory profit of RM0.30 per share, modestly greater than expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Bermaz Auto Berhad

Following the recent earnings report, the consensus from 14 analysts covering Bermaz Auto Berhad is for revenues of RM3.72b in 2025. This implies a noticeable 5.4% decline in revenue compared to the last 12 months. Statutory earnings per share are forecast to descend 13% to RM0.26 in the same period. Before this earnings report, the analysts had been forecasting revenues of RM3.69b and earnings per share (EPS) of RM0.25 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of RM2.92, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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 Bermaz Auto Berhad, with the most bullish analyst valuing it at RM3.50 and the most bearish at RM2.33 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. We would highlight that revenue is expected to reverse, with a forecast 5.4% annualised decline to the end of 2025. That is a notable change from historical growth of 16% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 10% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Bermaz Auto Berhad is expected to lag 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 Bermaz Auto Berhad following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at RM2.92, 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 Bermaz Auto Berhad going out to 2027, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 3 warning signs for Bermaz Auto Berhad (2 shouldn't be ignored!) that 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.

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