Riverstone Holdings Limited Recorded A 6.3% Miss On Revenue: Analysts Are Revisiting Their Models

As you might know, Riverstone Holdings Limited (SGX:AP4) last week released its latest annual, and things did not turn out so great for shareholders. Results look to have been somewhat negative - revenue fell 6.3% short of analyst estimates at RM1.1b, and statutory earnings of RM0.19 per share missed forecasts by 4.2%. The analysts 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Riverstone Holdings

Taking into account the latest results, the current consensus from Riverstone Holdings' four analysts is for revenues of RM1.35b in 2025. This would reflect a substantial 26% increase on its revenue over the past 12 months. Per-share earnings are expected to expand 17% to RM0.23. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM1.34b and earnings per share (EPS) of RM0.23 in 2025. 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.

There were no changes to revenue or earnings estimates or the price target of S$1.17, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Riverstone Holdings, with the most bullish analyst valuing it at S$1.25 and the most bearish at S$1.10 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. For example, we noticed that Riverstone Holdings' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 26% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 12% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 14% per year. Not only are Riverstone Holdings' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at S$1.17, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Riverstone Holdings. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Riverstone Holdings analysts - going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Riverstone Holdings 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.