PETRONAS Chemicals Group Berhad Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
As you might know, PETRONAS Chemicals Group Berhad (KLSE:PCHEM) last week released its latest quarterly, and things did not turn out so great for shareholders. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at RM7.9b, statutory earnings missed forecasts by an incredible 38%, coming in at just RM0.05 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the current consensus from PETRONAS Chemicals Group Berhad's 19 analysts is for revenues of RM31.9b in 2026. This would reflect a decent 13% increase on its revenue over the past 12 months. Earnings are expected to improve, with PETRONAS Chemicals Group Berhad forecast to report a statutory profit of RM0.20 per share. In the lead-up to this report, the analysts had been modelling revenues of RM32.4b and earnings per share (EPS) of RM0.23 in 2026. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a real cut to EPS estimates.
See our latest analysis for PETRONAS Chemicals Group Berhad
It might be a surprise to learn that the consensus price target fell 5.2% to RM5.14, with the analysts clearly linking lower forecast earnings to the performance of the stock price. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic PETRONAS Chemicals Group Berhad analyst has a price target of RM6.90 per share, while the most pessimistic values it at RM3.66. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the PETRONAS Chemicals Group Berhad's past performance and to peers in the same industry. It's clear from the latest estimates that PETRONAS Chemicals Group Berhad's rate of growth is expected to accelerate meaningfully, with the forecast 27% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 5.2% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.1% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that PETRONAS Chemicals Group 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 PETRONAS Chemicals Group Berhad. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of PETRONAS Chemicals Group Berhad's future valuation.
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 PETRONAS Chemicals Group Berhad going out to 2028, and you can see them free on our platform here.
Plus, you should also learn about the 2 warning signs we've spotted with PETRONAS Chemicals Group Berhad .
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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.