Maxis Berhad (KLSE:MAXIS) Full-Year Results: Here's What Analysts Are Forecasting For This Year

Maxis Berhad (KLSE:MAXIS) shareholders are probably feeling a little disappointed, since its shares fell 2.3% to RM3.43 in the week after its latest annual results. It was a credible result overall, with revenues of RM11b and statutory earnings per share of RM0.18 both in line with analyst estimates, showing that Maxis Berhad is executing in line with expectations. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Maxis Berhad after the latest results.

View our latest analysis for Maxis Berhad

Following the latest results, Maxis Berhad's 20 analysts are now forecasting revenues of RM10.7b in 2025. This would be a satisfactory 2.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 5.2% to RM0.19. Before this earnings report, the analysts had been forecasting revenues of RM10.7b and earnings per share (EPS) of RM0.19 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at RM3.95, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. There are some variant perceptions on Maxis Berhad, with the most bullish analyst valuing it at RM5.60 and the most bearish at RM3.30 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Maxis Berhad's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Maxis Berhad's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.0% growth on an annualised basis. This is compared to a historical growth rate of 3.1% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.3% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Maxis Berhad.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Maxis Berhad. 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 RM3.95, with the latest estimates not enough to have an impact on their price targets.

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 estimates - from multiple Maxis Berhad analysts - going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Maxis Berhad that you should be aware of.

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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.