Earnings Update: Here's Why Analysts Just Lifted Their Unisem (M) Berhad (KLSE:UNISEM) Price Target To RM2.68

Unisem (M) Berhad (KLSE:UNISEM) came out with its annual results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It was a credible result overall, with revenues of RM1.4b and statutory earnings per share of RM0.05 both in line with analyst estimates, showing that Unisem (M) Berhad is executing in line with expectations. 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'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 Unisem (M) Berhad

Taking into account the latest results, the current consensus from Unisem (M) Berhad's six analysts is for revenues of RM1.67b in 2024. This would reflect a decent 16% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 116% to RM0.11. Before this earnings report, the analysts had been forecasting revenues of RM1.66b and earnings per share (EPS) of RM0.11 in 2024. 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.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 6.2% to RM2.68. It looks as though they previously had some doubts over whether the business would live up to their expectations. 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. Currently, the most bullish analyst values Unisem (M) Berhad at RM3.56 per share, while the most bearish prices it at RM1.77. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Unisem (M) Berhad's past performance and to peers in the same industry. It's clear from the latest estimates that Unisem (M) Berhad's rate of growth is expected to accelerate meaningfully, with the forecast 16% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 7.7% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 15% per year. Unisem (M) Berhad is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Unisem (M) Berhad going out to 2026, and you can see them free on our platform here..

Even so, be aware that Unisem (M) Berhad is showing 2 warning signs in our investment analysis , and 1 of those is concerning...

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.