Earnings Miss: Credit Bureau Asia Limited Missed EPS By 17% And Analysts Are Revising Their Forecasts

Credit Bureau Asia Limited (SGX:TCU) just released its latest yearly report and things are not looking great. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at S$47m, statutory earnings missed forecasts by 17%, coming in at just S$0.034 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Credit Bureau Asia

Following the latest results, Credit Bureau Asia's lone analyst are now forecasting revenues of S$48.9m in 2022. This would be a modest 4.7% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to accumulate 8.8% to S$0.037. Before this earnings report, the analyst had been forecasting revenues of S$50.6m and earnings per share (EPS) of S$0.051 in 2022. The analyst seem less optimistic after the recent results, reducing their sales forecasts and making a large cut to earnings per share numbers.

It'll come as no surprise then, to learn that the analyst has cut their price target 22% to S$1.20.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Credit Bureau Asia's revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 4.7% growth on an annualised basis. This is compared to a historical growth rate of 7.3% over the past three years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 12% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Credit Bureau Asia.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Credit Bureau Asia. On the negative side, they also downgraded their revenue estimates, and forecasts imply revenues will perform worse than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Credit Bureau Asia's future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Credit Bureau Asia going out as far as 2024, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Credit Bureau Asia .

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.