FM Global Logistics Holdings Berhad Just Beat Revenue By 23%: Here's What Analysts Think Will Happen Next

As you might know, FM Global Logistics Holdings Berhad (KLSE:FM) just kicked off its latest yearly results with some very strong numbers. Statutory earnings beat expectations, with revenues of RM1.2b coming in a massive 23% ahead of forecasts, while earnings per share (eps) of RM0.082 beat expectations by 2.0%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on FM Global Logistics Holdings Berhad after the latest results.

View our latest analysis for FM Global Logistics Holdings Berhad

After the latest results, the consensus from FM Global Logistics Holdings Berhad's dual analysts is for revenues of RM1.09b in 2023, which would reflect a discernible 5.5% decline in sales compared to the last year of performance. Statutory per-share earnings are expected to be RM0.08, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM946.0m and earnings per share (EPS) of RM0.07 in 2023. There has definitely been an improvement in perception after these results, with the analysts noticeably increasing both their earnings and revenue estimates.

Despite these upgrades, the consensus price target fell 24% to RM0.92, perhaps signalling that the uplift in performance is not expected to last.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that sales are expected to reverse, with a forecast 5.5% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 17% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 13% per year. So it's pretty clear that FM Global Logistics Holdings Berhad's revenues are expected to shrink slower than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards FM Global Logistics Holdings Berhad following these results. Fortunately, they also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on FM Global Logistics Holdings Berhad. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with FM Global Logistics Holdings Berhad .

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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.