Combined Motor Holdings Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Combined Motor Holdings Limited (JSE:CMH) just released its latest interim report and things are not looking great. Combined Motor Holdings missed earnings this time around, with R8.1b revenue coming in 3.7% below what the analysts had modelled. Statutory earnings per share (EPS) of R2.63 also fell short of expectations by 12%. The analysts 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 analysts have changed their mind on Combined Motor Holdings after the latest results.

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Taking into account the latest results, the consensus forecast from Combined Motor Holdings' two analysts is for revenues of R16.8b in 2027. This reflects a modest 3.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 2.5% to R6.08. Before this earnings report, the analysts had been forecasting revenues of R17.2b and earnings per share (EPS) of R6.15 in 2027. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.

See our latest analysis for Combined Motor Holdings

The average price target was steady at R46.50even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings.

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. We can infer from the latest estimates that forecasts expect a continuation of Combined Motor Holdings'historical trends, as the 7.7% annualised revenue growth to the end of 2027 is roughly in line with the 7.6% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 7.0% per year. It's clear that while Combined Motor Holdings' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. Even so, earnings are more important to the intrinsic value of the business. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Combined Motor Holdings. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Combined Motor Holdings going out as far as 2029, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Combined Motor Holdings you should be aware of.

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