Gamuda Berhad Just Beat Revenue Estimates By 5.8%

Investors in Gamuda Berhad (KLSE:GAMUDA) had a good week, as its shares rose 5.8% to close at RM5.12 following the release of its full-year results. It was a workmanlike result, with revenues of RM18b coming in 5.8% ahead of expectations, and statutory earnings per share of RM0.18, in line with analyst appraisals. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the most recent consensus for Gamuda Berhad from 18 analysts is for revenues of RM23.2b in 2027. If met, it would imply a sizeable 26% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 31% to RM0.23. Before this earnings report, the analysts had been forecasting revenues of RM21.7b and earnings per share (EPS) of RM0.23 in 2027. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a slight bump in to revenue forecasts.

View our latest analysis for Gamuda Berhad

The analysts increased their price target 7.7% to RM5.72, perhaps signalling that higher revenues are a strong leading indicator for Gamuda Berhad's valuation. 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. Currently, the most bullish analyst values Gamuda Berhad at RM6.40 per share, while the most bearish prices it at RM4.40. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. We can infer from the latest estimates that forecasts expect a continuation of Gamuda Berhad'shistorical trends, as the 26% annualised revenue growth to the end of 2027 is roughly in line with the 33% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 18% per year. So although Gamuda Berhad is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

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. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Gamuda Berhad going out to 2029, and you can see them free on our platform here.

Even so, be aware that Gamuda Berhad is showing 1 warning sign in our investment analysis , you should know about...

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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.