Kawan Renergy Berhad Just Beat EPS By 13%: Here's What Analysts Think Will Happen Next

Kawan Renergy Berhad (KLSE:KENERGY) 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 9.1% to hit RM138m. Kawan Renergy Berhad reported statutory earnings per share (EPS) RM0.043, which was a notable 13% above what the analyst had forecast. Following the result, the analyst has 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on Kawan Renergy Berhad after the latest results.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Taking into account the latest results, the consensus forecast from Kawan Renergy Berhad's one analyst is for revenues of RM175.0m in 2026. This reflects a huge 27% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 28% to RM0.055. Before this earnings report, the analyst had been forecasting revenues of RM171.5m and earnings per share (EPS) of RM0.053 in 2026. 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.

View our latest analysis for Kawan Renergy Berhad

Despite these upgrades,the analyst has not made any major changes to their price target of RM1.05, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Kawan Renergy Berhad's rate of growth is expected to accelerate meaningfully, with the forecast 27% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 14% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Kawan Renergy Berhad is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Kawan Renergy Berhad's earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at RM1.05, with the latest estimates not enough to have an impact on their price target.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Kawan Renergy Berhad going out as far as 2028, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 3 warning signs for Kawan Renergy Berhad (1 can't be ignored!) that you need to be mindful 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.