Sports Toto Berhad Just Beat EPS By 17%: Here's What Analysts Think Will Happen Next

The full-year results for Sports Toto Berhad (KLSE:SPTOTO) were released last week, making it a good time to revisit its performance. It looks like a credible result overall - although revenues of RM6.0b were in line with what the analysts predicted, Sports Toto Berhad surprised by delivering a statutory profit of RM0.14 per share, a notable 17% above expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Sports Toto Berhad after the latest results.

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Taking into account the latest results, the consensus forecast from Sports Toto Berhad's six analysts is for revenues of RM6.30b in 2027. This reflects an okay 4.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 2.8% to RM0.15. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM6.32b and earnings per share (EPS) of RM0.14 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

Check out our latest analysis for Sports Toto Berhad

There were no changes to revenue or earnings estimates or the price target of RM1.39, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Sports Toto Berhad, with the most bullish analyst valuing it at RM1.53 and the most bearish at RM1.20 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Sports Toto Berhad is an easy business to forecast or the the analysts are all using similar assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Sports Toto Berhad's revenue growth is expected to slow, with the forecast 4.4% annualised growth rate until the end of 2027 being well below the historical 6.3% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.1% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Sports Toto Berhad.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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. We have forecasts for Sports Toto 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 2 warning signs for Sports Toto Berhad (1 is a bit concerning) 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.