ViTrox Corporation Berhad Just Missed Earnings - But Analysts Have Updated Their Models

It's been a good week for ViTrox Corporation Berhad (KLSE:VITROX) shareholders, because the company has just released its latest full-year results, and the shares gained 7.8% to RM7.57. It was not a great result overall. While revenues of RM599m were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 13% to hit RM0.13 per share. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for ViTrox Corporation Berhad

Taking into account the latest results, the consensus forecast from ViTrox Corporation Berhad's nine analysts is for revenues of RM776.0m in 2024. This reflects a substantial 30% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 53% to RM0.21. In the lead-up to this report, the analysts had been modelling revenues of RM805.9m and earnings per share (EPS) of RM0.22 in 2024. 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 RM8.03, suggesting the downgrades are not expected to have a long-term impact on ViTrox Corporation Berhad'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. Currently, the most bullish analyst values ViTrox Corporation Berhad at RM10.00 per share, while the most bearish prices it at RM6.15. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting ViTrox Corporation Berhad's growth to accelerate, with the forecast 30% annualised growth to the end of 2024 ranking favourably alongside historical growth of 15% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 15% per year. 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 most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will 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.

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. At Simply Wall St, we have a full range of analyst estimates for ViTrox Corporation Berhad going out to 2026, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.