Critical Holdings Berhad Just Beat Revenue By 11%: Here's What Analysts Think Will Happen Next

A week ago, Critical Holdings Berhad (KLSE:CHB) came out with a strong set of yearly numbers that could potentially lead to a re-rate of the stock. It was a positive result, with revenues and statutory earnings per share (EPS) both performing well. Revenues were 11% higher than the analysts had forecast, at RM306m, while EPS of RM0.06 beat analyst models by 2.4%. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the current consensus from Critical Holdings Berhad's three analysts is for revenues of RM740.5m in 2027. This would reflect a major 142% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 131% to RM0.14. In the lead-up to this report, the analysts had been modelling revenues of RM712.8m and earnings per share (EPS) of RM0.14 in 2027. So it's pretty clear consensus is mixed on Critical Holdings Berhad after the latest results; whilethe analysts lifted revenue numbers, they also administered a small dip in per-share earnings expectations.

Check out our latest analysis for Critical Holdings Berhad

The analysts also upgraded Critical Holdings Berhad's price target 6.7% to RM2.47, implying that the higher revenue expected to generate enough value to offset the forecast decline in earnings. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Critical Holdings Berhad, with the most bullish analyst valuing it at RM2.94 and the most bearish at RM2.20 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Critical Holdings Berhad is an easy business to forecast or the the analysts are all using similar assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Critical Holdings Berhad's rate of growth is expected to accelerate meaningfully, with the forecast 142% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 24% 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 18% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Critical Holdings Berhad to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 Critical Holdings 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 Critical Holdings 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.