PETRONAS Gas Berhad Just Beat Revenue Estimates By 5.4%

The annual results for PETRONAS Gas Berhad (KLSE:PETGAS) were released last week, making it a good time to revisit its performance. It was a pretty mixed result, with revenues beating expectations to hit RM6.4b. Statutory earnings fell 3.3% short of analyst forecasts, reaching RM0.92 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for PETRONAS Gas Berhad

After the latest results, the consensus from PETRONAS Gas Berhad's 13 analysts is for revenues of RM6.29b in 2024, which would reflect a perceptible 2.4% decline in revenue compared to the last year of performance. Per-share earnings are expected to accumulate 4.2% to RM0.96. In the lead-up to this report, the analysts had been modelling revenues of RM6.21b and earnings per share (EPS) of RM0.97 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of RM18.26, showing that the business is executing well and in line with 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 PETRONAS Gas Berhad analyst has a price target of RM20.60 per share, while the most pessimistic values it at RM16.46. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting PETRONAS Gas Berhad is an easy business to forecast or the the analysts are all using similar assumptions.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 2.4% by the end of 2024. This indicates a significant reduction from annual growth of 3.7% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.6% per year. It's pretty clear that PETRONAS Gas Berhad's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that PETRONAS Gas Berhad's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for PETRONAS Gas Berhad going out to 2026, and you can see them free on our platform here.

Even so, be aware that PETRONAS Gas Berhad is showing 1 warning sign in our investment analysis , you should know about...

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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.