Inari Amertron Berhad Just Missed EPS By 82%: Here's What Analysts Think Will Happen Next

The analysts might have been a bit too bullish on Inari Amertron Berhad (KLSE:INARI), given that the company fell short of expectations when it released its quarterly results last week. Unfortunately, Inari Amertron Berhad delivered a serious earnings miss. Revenues of RM388m were 19% below expectations, and statutory earnings per share of RM0.0064 missed estimates by 82%. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Inari Amertron Berhad

Taking into account the latest results, the most recent consensus for Inari Amertron Berhad from 18 analysts is for revenues of RM1.71b in 2025. If met, it would imply a notable 16% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 70% to RM0.11. Before this earnings report, the analysts had been forecasting revenues of RM1.71b and earnings per share (EPS) of RM0.11 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of RM3.68, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Inari Amertron Berhad at RM4.78 per share, while the most bearish prices it at RM2.80. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Inari Amertron Berhad shareholders.

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. The analysts are definitely expecting Inari Amertron Berhad's growth to accelerate, with the forecast 21% annualised growth to the end of 2025 ranking favourably alongside historical growth of 5.6% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 14% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Inari Amertron Berhad is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 Inari Amertron Berhad 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 Inari Amertron Berhad 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.