Last week saw the newest full-year earnings release from Jaya Tiasa Holdings Berhad (KLSE:JTIASA), an important milestone in the company's journey to build a stronger business. Statutory earnings per share fell badly short of expectations, coming in at RM0.11, some 32% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at RM1.1b. This is an important time for investors, as they can track a company's performance in its report, look at what expert is 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 estimate to see what could be in store for next year.
Taking into account the latest results, the consensus forecast from Jaya Tiasa Holdings Berhad's solitary analyst is for revenues of RM1.21b in 2027. This reflects an okay 7.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 66% to RM0.18. Yet prior to the latest earnings, the analyst had been anticipated revenues of RM1.22b and earnings per share (EPS) of RM0.24 in 2027. So there's definitely been a decline in sentiment after the latest results, noting the pretty serious reduction to new EPS forecasts.
See our latest analysis for Jaya Tiasa Holdings Berhad
The average price target fell 16% to RM1.25, with reduced earnings forecasts clearly tied to a lower valuation estimate.
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 pretty clear that there is an expectation that Jaya Tiasa Holdings Berhad's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 7.1% growth on an annualised basis. This is compared to a historical growth rate of 10% 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) 8.2% annually. Factoring in the forecast slowdown in growth, it looks like Jaya Tiasa Holdings Berhad is forecast to grow at about the same rate as the wider industry.
The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
With that in mind, we wouldn't be too quick to come to a conclusion on Jaya Tiasa Holdings Berhad. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2029, which can be seen for free on our platform here.
You still need to take note of risks, for example - Jaya Tiasa Holdings Berhad has 2 warning signs we think 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.