Northeast Group Berhad Full Year 2024 Earnings: EPS Misses Expectations

Northeast Group Berhad (KLSE:NE) Full Year 2024 Results

Key Financial Results

• Revenue: RM90.1m (down 3.4% from FY 2023).
• Net income: RM13.7m (down 25% from FY 2023).
• Profit margin: 15% (down from 20% in FY 2023). The decrease in margin was primarily driven by lower revenue.
• EPS: RM0.019 (down from RM0.025 in FY 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Northeast Group Berhad EPS Misses Expectations

Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 19%.

In the last 12 months, the only revenue segment was Precision Engineering Works contributing RM90.1m. Notably, cost of sales worth RM55.5m amounted to 62% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to RM16.7m (80% of total expenses). Explore how NE's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 17% p.a. on average during the next 3 years, compared to a 19% growth forecast for the Electronic industry in Malaysia.

Performance of the Malaysian Electronic industry.

The company's shares are down 8.9% from a week ago.

Risk Analysis

It's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Northeast Group Berhad, and understanding them should be part of your investment process.

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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.