IOI Corporation Berhad Just Beat EPS By 14%: Here's What Analysts Think Will Happen Next
IOI Corporation Berhad (KLSE:IOICORP) investors will be delighted, with the company turning in some strong numbers with its latest results. It was overall a positive result, with revenues beating expectations by 2.3% to hit RM12b. IOI Corporation Berhad reported statutory earnings per share (EPS) RM0.27, which was a notable 14% above what the analysts had forecast. 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.
Taking into account the latest results, the consensus forecast from IOI Corporation Berhad's 13 analysts is for revenues of RM12.8b in 2027. This reflects a meaningful 8.4% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be RM0.26, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of RM12.3b and earnings per share (EPS) of RM0.25 in 2027. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.
Check out our latest analysis for IOI Corporation Berhad
Despite these upgrades,the analysts have not made any major changes to their price target of RM4.84, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. 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 IOI Corporation Berhad analyst has a price target of RM5.50 per share, while the most pessimistic values it at RM4.33. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the IOI Corporation Berhad's past performance and to peers in the same industry. For example, we noticed that IOI Corporation Berhad's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 8.4% growth to the end of 2027 on an annualised basis. That is well above its historical decline of 5.4% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 3.7% annually. So it looks like IOI Corporation Berhad is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around IOI Corporation Berhad's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster 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. At Simply Wall St, we have a full range of analyst estimates for IOI Corporation Berhad going out to 2029, 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 IOI Corporation Berhad that 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.