Infomina Berhad Just Beat EPS By 26%: Here's What Analysts Think Will Happen Next

As you might know, Infomina Berhad (KLSE:INFOM) recently reported its full-year numbers. Revenues of RM251m fell slightly short of expectations, but earnings were a definite bright spot, with statutory per-share profits of RM0.073 an impressive 26% ahead of estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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 Infomina Berhad

Taking into account the latest results, the most recent consensus for Infomina Berhad from three analysts is for revenues of RM328.9m in 2024. If met, it would imply a sizeable 31% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 28% to RM0.087. Before this earnings report, the analysts had been forecasting revenues of RM316.9m and earnings per share (EPS) of RM0.068 in 2024. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a sizeable expansion in earnings per share in particular.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of RM1.80, suggesting that the forecast performance does not have a long term impact on the company's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Infomina Berhad at RM1.96 per share, while the most bearish prices it at RM1.70. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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 period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 31% growth on an annualised basis. That is in line with its 38% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 9.0% annually. So although Infomina Berhad is expected to maintain its revenue growth rate, it's definitely expected to grow faster than 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 Infomina Berhad following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at RM1.80, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Infomina Berhad analysts - going out to 2026, and you can see them free on our platform here.

We also provide an overview of the Infomina Berhad Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.