NationGate Holdings Berhad (KLSE:NATGATE) Just Beat Earnings: Here's What Analysts Think Will Happen Next

NationGate Holdings Berhad (KLSE:NATGATE) just released its annual report and things are looking bullish. Statutory revenue of RM5.3b and earnings of RM0.07 both blasted past expectations, beating expectations by 38% and 41%, respectively, ahead of expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on NationGate Holdings Berhad after the latest results.

See our latest analysis for NationGate Holdings Berhad

After the latest results, the four analysts covering NationGate Holdings Berhad are now predicting revenues of RM6.77b in 2025. If met, this would reflect a major 28% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 37% to RM0.096. In the lead-up to this report, the analysts had been modelling revenues of RM6.20b and earnings per share (EPS) of RM0.095 in 2025. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a small increase to to revenue forecasts.

Even though revenue forecasts increased, the consensus price target 6.2% to RM2.64, perhaps suggesting thatthe analysts have become more pessimistic about the lack of earnings growth. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values NationGate Holdings Berhad at RM4.00 per share, while the most bearish prices it at RM2.12. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. We would highlight that NationGate Holdings Berhad's revenue growth is expected to slow, with the forecast 28% annualised growth rate until the end of 2025 being well below the historical 41% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 15% per year. Even after the forecast slowdown in growth, it seems obvious that NationGate Holdings Berhad is also expected to grow faster than the wider 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. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of NationGate Holdings Berhad's future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for NationGate Holdings Berhad going out to 2027, and you can see them free on our platform here.

Even so, be aware that NationGate Holdings Berhad is showing 2 warning signs in our investment analysis , you should know about...

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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.