Stock Analysis

Malaysia Airports Holdings Berhad Just Beat EPS By 22%: Here's What Analysts Think Will Happen Next

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Malaysia Airports Holdings Berhad (KLSE:AIRPORT) defied analyst predictions to release its full-year results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 3.1% to hit RM4.9b. Malaysia Airports Holdings Berhad also reported a statutory profit of RM0.29, which was an impressive 22% above what the analysts had forecast. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Malaysia Airports Holdings Berhad

KLSE:AIRPORT Earnings and Revenue Growth March 3rd 2024

Taking into account the latest results, the most recent consensus for Malaysia Airports Holdings Berhad from 16 analysts is for revenues of RM5.75b in 2024. If met, it would imply a solid 17% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 48% to RM0.43. Before this earnings report, the analysts had been forecasting revenues of RM5.71b and earnings per share (EPS) of RM0.44 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 5.0% to RM8.80. It looks as though they previously had some doubts over whether the business would live up to their expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Malaysia Airports Holdings Berhad analyst has a price target of RM11.30 per share, while the most pessimistic values it at RM7.00. 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.

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. For example, we noticed that Malaysia Airports Holdings Berhad's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 17% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 8.2% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 10% annually. So it looks like Malaysia Airports Holdings Berhad is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Malaysia Airports Holdings Berhad analysts - going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Malaysia Airports Holdings Berhad that we have uncovered.

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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.