Revenue Miss: Malayan Banking Berhad Fell 12% Short Of Analyst Revenue Estimates And Analysts Have Been Revising Their Models
The analysts might have been a bit too bullish on Malayan Banking Berhad (KLSE:MAYBANK), given that the company fell short of expectations when it released its quarterly results last week. It looks like a weak result overall, with both revenues and earnings falling well short of analyst predictions. Revenues of RM6.9b missed by 12%, and statutory earnings per share of RM0.21 fell short of forecasts by 4.8%. 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.
Taking into account the latest results, the current consensus from Malayan Banking Berhad's 19 analysts is for revenues of RM30.7b in 2026. This would reflect a satisfactory 7.8% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 3.5% to RM0.89. Before this earnings report, the analysts had been forecasting revenues of RM31.6b and earnings per share (EPS) of RM0.91 in 2026. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.
Check out our latest analysis for Malayan Banking Berhad
The analysts made no major changes to their price target of RM12.10, suggesting the downgrades are not expected to have a long-term impact on Malayan Banking 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. The most optimistic Malayan Banking Berhad analyst has a price target of RM15.00 per share, while the most pessimistic values it at RM10.90. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
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 clear from the latest estimates that Malayan Banking Berhad's rate of growth is expected to accelerate meaningfully, with the forecast 11% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 7.3% 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 6.1% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Malayan Banking Berhad is expected to grow much faster than its industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Malayan Banking Berhad. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target held steady at RM12.10, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Malayan Banking Berhad. Long-term earnings power is much more important than next year's profits. We have forecasts for Malayan Banking Berhad going out to 2028, and you can see them free on our platform here.
Even so, be aware that Malayan Banking 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.