Scientex Berhad (KLSE:SCIENTX) Just Reported Full-Year Earnings: Have Analysts Changed Their Mind On The Stock?
Investors in Scientex Berhad (KLSE:SCIENTX) had a good week, as its shares rose 5.8% to close at RM3.84 following the release of its yearly results. Scientex Berhad missed revenue estimates by 2.4%, coming in atRM4.8b, although statutory earnings per share (EPS) of RM0.40 beat expectations, coming in 4.8% ahead of analyst estimates. 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.
Following the latest results, Scientex Berhad's six analysts are now forecasting revenues of RM4.97b in 2027. This would be a satisfactory 3.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 4.0% to RM0.41. In the lead-up to this report, the analysts had been modelling revenues of RM5.24b and earnings per share (EPS) of RM0.41 in 2027. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.
View our latest analysis for Scientex Berhad
The average price target was steady at RM4.23even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings. 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 Scientex Berhad analyst has a price target of RM4.95 per share, while the most pessimistic values it at RM3.91. This is a very narrow spread of estimates, implying either that Scientex Berhad is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Scientex Berhad's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Scientex Berhad's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 3.3% growth on an annualised basis. This is compared to a historical growth rate of 4.8% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.3% annually. So it's pretty clear that, while Scientex Berhad's revenue growth is expected to slow, it's expected to grow roughly in line with the 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 downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. With that said, earnings are more important to the long-term value of the business. The consensus price target held steady at RM4.23, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Scientex Berhad. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Scientex Berhad analysts - going out to 2029, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Scientex Berhad , and understanding it should be part of your investment process.
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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.