Celcomdigi Berhad Just Missed EPS By 22%: Here's What Analysts Think Will Happen Next

It's been a good week for Celcomdigi Berhad (KLSE:CDB) shareholders, because the company has just released its latest annual results, and the shares gained 4.4% to RM3.59. It looks like a pretty bad result, all things considered. Although revenues of RM13b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 22% to hit RM0.12 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Following last week's earnings report, Celcomdigi Berhad's 22 analysts are forecasting 2025 revenues to be RM13.0b, approximately in line with the last 12 months. Statutory earnings per share are predicted to leap 38% to RM0.16. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM13.0b and earnings per share (EPS) of RM0.18 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

Check out our latest analysis for Celcomdigi Berhad

It might be a surprise to learn that the consensus price target was broadly unchanged at RM4.00, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on 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. There are some variant perceptions on Celcomdigi Berhad, with the most bullish analyst valuing it at RM5.60 and the most bearish at RM3.03 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Celcomdigi Berhad's revenue growth is expected to slow, with the forecast 1.9% annualised growth rate until the end of 2025 being well below the historical 19% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.1% annually. Factoring in the forecast slowdown in growth, it seems obvious that Celcomdigi Berhad is also expected to grow slower than other industry participants.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at RM4.00, 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 Celcomdigi Berhad analysts - going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Celcomdigi Berhad (including 1 which makes us a bit uncomfortable) .

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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.