MISC Berhad Beat Revenue Forecasts By 5.4%: Here's What Analysts Are Forecasting Next

Last week saw the newest yearly earnings release from MISC Berhad (KLSE:MISC), an important milestone in the company's journey to build a stronger business. MISC Berhad beat revenue expectations by 5.4%, at RM14b. Statutory earnings per share (EPS) came in at RM0.48, some 3.9% short of analyst estimates. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for MISC Berhad

After the latest results, the consensus from MISC Berhad's 14 analysts is for revenues of RM13.4b in 2024, which would reflect a measurable 6.1% decline in revenue compared to the last year of performance. Per-share earnings are expected to step up 10% to RM0.52. Before this earnings report, the analysts had been forecasting revenues of RM13.0b and earnings per share (EPS) of RM0.51 in 2024. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

Despite these upgrades,the analysts have not made any major changes to their price target of RM8.35, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. 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. There are some variant perceptions on MISC Berhad, with the most bullish analyst valuing it at RM10.10 and the most bearish at RM7.10 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 6.1% by the end of 2024. This indicates a significant reduction from annual growth of 12% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 2.3% per year. So it's pretty clear that MISC Berhad's revenues are expected to shrink faster 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 MISC Berhad following these results. They also upgraded their estimates, with revenue apparently performing well, although it is expected to lag the wider industry this year. The consensus price target held steady at RM8.35, 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 forecasts for MISC Berhad going out to 2026, and you can see them free on our platform here.

You can also see whether MISC Berhad is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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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.