Here's What Analysts Are Forecasting For FM Global Logistics Holdings Berhad (KLSE:FM) Following Its Earnings Miss

It's shaping up to be a tough period for FM Global Logistics Holdings Berhad (KLSE:FM), which a week ago released some disappointing full-year results that could have a notable impact on how the market views the stock. Results look to have been somewhat negative - revenue fell 7.5% short of analyst estimates at RM817m, and statutory earnings of RM0.055 per share missed forecasts by 7.8%. The analyst 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. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.

View our latest analysis for FM Global Logistics Holdings Berhad

Taking into account the latest results, the most recent consensus for FM Global Logistics Holdings Berhad from sole analyst is for revenues of RM840.0m in 2025. If met, it would imply a credible 2.8% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 45% to RM0.08. Yet prior to the latest earnings, the analyst had been anticipated revenues of RM897.0m and earnings per share (EPS) of RM0.09 in 2025. The analyst seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.

The consensus price target fell 5.8% to RM0.65, with the weaker earnings outlook clearly leading valuation estimates.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that FM Global Logistics Holdings Berhad's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.8% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 0.2% per year. Factoring in the forecast slowdown in growth, it's pretty clear that FM Global Logistics Holdings Berhad is still expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates that is expected to perform better than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Furthermore, the analyst 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. We have analyst estimates for FM Global Logistics Holdings Berhad going out as far as 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 FM Global Logistics Holdings Berhad (including 1 which is a bit unpleasant) .

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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.