Earnings Miss: V.S. Industry Berhad Missed EPS By 66% And Analysts Are Revising Their Forecasts

V.S. Industry Berhad (KLSE:VS) just released its latest yearly report and things are not looking great. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at RM3.8b, statutory earnings missed forecasts by an incredible 66%, coming in at just RM0.0095 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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After the latest results, the ten analysts covering V.S. Industry Berhad are now predicting revenues of RM4.37b in 2026. If met, this would reflect a meaningful 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 345% to RM0.042. In the lead-up to this report, the analysts had been modelling revenues of RM4.87b and earnings per share (EPS) of RM0.052 in 2026. Indeed, we can see that the analysts are a lot more bearish about V.S. Industry Berhad's prospects following the latest results, administering a real cut to revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for V.S. Industry Berhad

The consensus price target fell 8.0% to RM0.79, with the weaker earnings outlook clearly leading valuation estimates. 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. The most optimistic V.S. Industry Berhad analyst has a price target of RM0.94 per share, while the most pessimistic values it at RM0.60. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the V.S. Industry Berhad's past performance and to peers in the same industry. The analysts are definitely expecting V.S. Industry Berhad's growth to accelerate, with the forecast 15% annualised growth to the end of 2026 ranking favourably alongside historical growth of 3.7% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.5% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect V.S. Industry Berhad to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for V.S. Industry 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 fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of V.S. Industry Berhad's future valuation.

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 V.S. Industry Berhad analysts - going out to 2028, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for V.S. Industry Berhad 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.