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The quarterly results for Singapore Telecommunications Limited (SGX:Z74) were released last week, making it a good time to revisit its performance. It was an okay result overall, with revenues coming in at S$3.6b, roughly what the analysts had been expecting. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
View our latest analysis for Singapore Telecommunications
After the latest results, the 17 analysts covering Singapore Telecommunications are now predicting revenues of S$14.4b in 2025. If met, this would reflect a modest 2.1% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Singapore Telecommunications forecast to report a statutory profit of S$0.16 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of S$14.4b and earnings per share (EPS) of S$0.15 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at S$3.71. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Singapore Telecommunications, with the most bullish analyst valuing it at S$4.60 and the most bearish at S$3.36 per share. 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.
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. For example, we noticed that Singapore Telecommunications' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 4.2% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 3.8% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 3.9% annually. So while Singapore Telecommunications' revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.