Earnings Miss: NetLink NBN Trust Missed EPS By 6.7% And Analysts Are Revising Their Forecasts

Last week, you might have seen that NetLink NBN Trust (SGX:CJLU) released its full-year result to the market. The early response was not positive, with shares down 2.2% to S$0.91 in the past week. It looks like the results were a bit of a negative overall. While revenues of S$415m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 6.7% to hit S$0.025 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Following last week's earnings report, NetLink NBN Trust's six analysts are forecasting 2026 revenues to be S$416.6m, approximately in line with the last 12 months. Per-share earnings are expected to accumulate 6.7% to S$0.026. Yet prior to the latest earnings, the analysts had been anticipated revenues of S$422.9m and earnings per share (EPS) of S$0.027 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

Check out our latest analysis for NetLink NBN Trust

The consensus price target held steady at S$0.97, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. The most optimistic NetLink NBN Trust analyst has a price target of S$1.02 per share, while the most pessimistic values it at S$0.87. This is a very narrow spread of estimates, implying either that NetLink NBN Trust is an easy company to value, or - more likely - the analysts are relying heavily on some key 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. It's pretty clear that there is an expectation that NetLink NBN Trust's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 0.4% growth on an annualised basis. This is compared to a historical growth rate of 3.1% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.8% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than NetLink NBN Trust.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple NetLink NBN Trust analysts - going out to 2028, and you can see them free on our platform here.

You still need to take note of risks, for example - NetLink NBN Trust has 1 warning sign we think 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.