Earnings Miss: CapitaLand Investment Limited Missed EPS By 33% And Analysts Are Revising Their Forecasts

It's shaping up to be a tough period for CapitaLand Investment Limited (SGX:9CI), which a week ago released some disappointing annual results that could have a notable impact on how the market views the stock. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at S$2.8b, statutory earnings missed forecasts by an incredible 33%, coming in at just S$0.094 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for CapitaLand Investment

Following the recent earnings report, the consensus from eleven analysts covering CapitaLand Investment is for revenues of S$2.21b in 2025. This implies a stressful 21% decline in revenue compared to the last 12 months. Per-share earnings are expected to bounce 44% to S$0.14. In the lead-up to this report, the analysts had been modelling revenues of S$2.94b and earnings per share (EPS) of S$0.16 in 2025. It looks like sentiment has declined substantially in the aftermath of these results, with a pretty serious reduction to revenue estimates and a substantial drop in earnings per share numbers as well.

Despite the cuts to forecast earnings, there was no real change to the S$3.55 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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 CapitaLand Investment, with the most bullish analyst valuing it at S$4.30 and the most bearish at S$3.03 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. We would highlight that revenue is expected to reverse, with a forecast 21% annualised decline to the end of 2025. That is a notable change from historical growth of 6.3% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 0.6% annually for the foreseeable future. So it's pretty clear that CapitaLand Investment's revenues are expected to shrink faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for CapitaLand Investment. Unfortunately they also cut their revenue estimates for next year. Forecasts imply the business' revenue is expected to perform worse than the wider industry. That said, earnings per share are more important for creating value for shareholders. The consensus price target held steady at S$3.55, with the latest estimates not enough to have an impact on their price targets.

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 estimates - from multiple CapitaLand Investment analysts - going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for CapitaLand Investment that you should be aware of.

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.