A week ago, Deleum Berhad (KLSE:DELEUM) came out with a strong set of yearly numbers that could potentially lead to a re-rate of the stock. It was a decent earnings report, with revenues and statutory earnings per share (EPS) both performing well. Revenues were 20% higher than the analysts had forecast, at RM698m, while EPS of RM0.10 beat analyst models by 19%. 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.
Check out our latest analysis for Deleum Berhad
Taking into account the latest results, the most recent consensus for Deleum Berhad from dual analysts is for revenues of RM736.7m in 2023 which, if met, would be an okay 5.5% increase on its sales over the past 12 months. Statutory earnings per share are predicted to surge 38% to RM0.14. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM620.8m and earnings per share (EPS) of RM0.094 in 2023. So we can see there's been a pretty clear increase in sentiment following the latest results, with both revenues and earnings per share receiving a decent lift in the latest estimates.
It will come as no surprise to learn that the analysts have increased their price target for Deleum Berhad 9.6% to RM1.10on the back of these upgrades.
Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Deleum Berhad is forecast to grow faster in the future than it has in the past, with revenues expected to display 5.5% annualised growth until the end of 2023. If achieved, this would be a much better result than the 1.7% annual decline 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 5.0% annually. So while Deleum Berhad's revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Deleum Berhad following these results. They also upgraded their revenue forecasts, although the latest estimates suggest that Deleum Berhad will grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.