Earnings Update: SATS Ltd. (SGX:S58) Just Reported Its Annual Results And Analysts Are Updating Their Forecasts

As you might know, SATS Ltd. (SGX:S58) recently reported its annual numbers. Results overall were respectable, with statutory earnings of S$0.16 per share roughly in line with what the analysts had forecast. Revenues of S$5.8b came in 3.4% ahead of analyst predictions. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

We've discovered 1 warning sign about SATS. View them for free.

Following last week's earnings report, SATS' nine analysts are forecasting 2026 revenues to be S$5.91b, approximately in line with the last 12 months. Statutory earnings per share are predicted to increase 7.4% to S$0.18. In the lead-up to this report, the analysts had been modelling revenues of S$5.82b and earnings per share (EPS) of S$0.18 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.

See our latest analysis for SATS

It might be a surprise to learn that the consensus price target was broadly unchanged at S$3.75, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on SATS, with the most bullish analyst valuing it at S$4.56 and the most bearish at S$3.22 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that SATS' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 1.5% growth on an annualised basis. This is compared to a historical growth rate of 38% 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 5.7% per year. Factoring in the forecast slowdown in growth, it seems obvious that SATS is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for SATS. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at S$3.75, with the latest estimates not enough to have an impact on their price targets.

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 SATS 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 - SATS has 1 warning sign we think you should be aware of.

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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.