Analysts Have Made A Financial Statement On Singapore Telecommunications Limited's (SGX:Z74) Third-Quarter Report

The quarterly results for Singapore Telecommunications Limited (SGX:Z74) were released last week, making it a good time to revisit its performance. It was an okay report, and revenues came in at S$3.6b, approximately in line with analyst estimates leading up to the results announcement. 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.

Check out our latest analysis for Singapore Telecommunications

Taking into account the latest results, the current consensus from Singapore Telecommunications' 17 analysts is for revenues of S$14.8b in 2026. This would reflect a modest 4.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 286% to S$0.17. Before this earnings report, the analysts had been forecasting revenues of S$14.8b and earnings per share (EPS) of S$0.17 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of S$3.79, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Singapore Telecommunications analyst has a price target of S$4.60 per share, while the most pessimistic values it at S$3.37. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Singapore Telecommunications' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 3.7% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 3.5% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 3.9% per year. So while Singapore Telecommunications' revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Singapore Telecommunications 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 3 warning signs for Singapore Telecommunications (of which 1 is significant!) 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.