BRC Asia Limited Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Investors in BRC Asia Limited (SGX:BEC) had a good week, as its shares rose 6.9% to close at S$1.40 following the release of its yearly results. Results look mixed - while revenue fell marginally short of analyst estimates at S$612m, statutory earnings beat expectations 9.0%, with BRC Asia reporting profits of S$0.087 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for BRC Asia

Taking into account the latest results, the current consensus from BRC Asia's dual analysts is for revenues of S$821.0m in 2021, which would reflect a substantial 34% increase on its sales over the past 12 months. Statutory earnings per share are predicted to leap 80% to S$0.16. In the lead-up to this report, the analysts had been modelling revenues of S$795.5m and earnings per share (EPS) of S$0.13 in 2021. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a considerable lift to earnings per share in particular.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 49% to S$1.89per share.

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. The analysts are definitely expecting BRC Asia's growth to accelerate, with the forecast 34% growth ranking favourably alongside historical growth of 23% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 9.5% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that BRC Asia is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around BRC Asia's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2023, which can be seen for free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with BRC Asia .

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