Stock Analysis

ViTrox Corporation Berhad Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

KLSE:VITROX
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ViTrox Corporation Berhad (KLSE:VITROX) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. ViTrox Corporation Berhad delivered a grave earnings miss, with both revenues (RM147m) and statutory earnings per share (RM0.012) falling badly short of analyst expectations. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for ViTrox Corporation Berhad

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KLSE:VITROX Earnings and Revenue Growth October 27th 2024

Taking into account the latest results, the most recent consensus for ViTrox Corporation Berhad from eleven analysts is for revenues of RM755.3m in 2025. If met, it would imply a huge 40% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 91% to RM0.093. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM784.1m and earnings per share (EPS) of RM0.098 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

The analysts made no major changes to their price target of RM3.87, suggesting the downgrades are not expected to have a long-term impact on ViTrox Corporation Berhad's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on ViTrox Corporation Berhad, with the most bullish analyst valuing it at RM5.15 and the most bearish at RM2.92 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting ViTrox Corporation Berhad's growth to accelerate, with the forecast 31% annualised growth to the end of 2025 ranking favourably alongside historical growth of 9.5% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that ViTrox Corporation Berhad is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for ViTrox Corporation Berhad. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target held steady at RM3.87, 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 ViTrox Corporation Berhad. Long-term earnings power is much more important than next year's profits. We have forecasts for ViTrox Corporation Berhad going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with ViTrox Corporation Berhad (including 1 which can't be ignored) .

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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.