CPE Technology Berhad Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Investors in CPE Technology Berhad (KLSE:CPETECH) had a good week, as its shares rose 3.6% to close at RM1.14 following the release of its annual results. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at RM117m, statutory earnings beat expectations by a notable 13%, coming in at RM0.027 per share. The analyst typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on CPE Technology Berhad after the latest results.

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Taking into account the latest results, the current consensus from CPE Technology Berhad's lone analyst is for revenues of RM172.1m in 2027. This would reflect a substantial 47% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 62% to RM0.044. In the lead-up to this report, the analyst had been modelling revenues of RM133.8m and earnings per share (EPS) of RM0.04 in 2027. Sentiment certainly seems to have improved after the latest results, with a sizeable gain to revenue and a small lift in earnings per share estimates.

Check out our latest analysis for CPE Technology Berhad

It will come as no surprise to learn that the analyst has increased their price target for CPE Technology Berhad 43% to RM1.50on the back of these upgrades.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that CPE Technology Berhad's rate of growth is expected to accelerate meaningfully, with the forecast 47% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 0.3% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 17% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that CPE Technology 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 CPE Technology Berhad's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2029, which can be seen for free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for CPE Technology 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.