Dialog Group Berhad (KLSE:DIALOG) Yearly Results Just Came Out: Here's What Analysts Are Forecasting For This Year
Investors in Dialog Group Berhad (KLSE:DIALOG) had a good week, as its shares rose 4.2% to close at RM1.99 following the release of its full-year results. Dialog Group Berhad reported RM2.9b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of RM0.11 beat expectations, being 3.7% higher than what the analysts expected. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
After the latest results, the 13 analysts covering Dialog Group Berhad are now predicting revenues of RM3.16b in 2027. If met, this would reflect a decent 9.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 5.8% to RM0.11. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM3.09b and earnings per share (EPS) of RM0.11 in 2027. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a modest lift to to revenue forecasts.
See our latest analysis for Dialog Group Berhad
Even though revenue forecasts increased, there was no change to the consensus price target of RM2.46, suggesting the analysts are focused on earnings as the driver of value creation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Dialog Group Berhad analyst has a price target of RM2.95 per share, while the most pessimistic values it at RM2.10. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Dialog Group Berhad shareholders.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Dialog Group Berhad's past performance and to peers in the same industry. The analysts are definitely expecting Dialog Group Berhad's growth to accelerate, with the forecast 9.5% annualised growth to the end of 2027 ranking favourably alongside historical growth of 6.1% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.3% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Dialog Group Berhad 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. The consensus price target held steady at RM2.46, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Dialog Group 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 1 warning sign for Dialog Group 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.