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CapitaLand Investment Limited (SGX:9CI) just released its latest full-year report and things are not looking great. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at S$2.8b, statutory earnings missed forecasts by an incredible 33%, coming in at just S$0.094 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
View our latest analysis for CapitaLand Investment
Taking into account the latest results, the eleven analysts covering CapitaLand Investment provided consensus estimates of S$2.21b revenue in 2025, which would reflect a sizeable 21% decline over the past 12 months. Statutory earnings per share are predicted to soar 44% to S$0.14. Yet prior to the latest earnings, the analysts had been anticipated revenues of S$2.94b and earnings per share (EPS) of S$0.16 in 2025. Indeed, we can see that the analysts are a lot more bearish about CapitaLand Investment's prospects following the latest results, administering a pretty serious reduction to revenue estimates and slashing their EPS estimates to boot.
The analysts made no major changes to their price target of S$3.55, suggesting the downgrades are not expected to have a long-term impact on CapitaLand Investment's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on CapitaLand Investment, with the most bullish analyst valuing it at S$4.30 and the most bearish at S$3.03 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the CapitaLand Investment's past performance and to peers in the same industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 21% by the end of 2025. This indicates a significant reduction from annual growth of 6.3% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 0.6% annually for the foreseeable future. The forecasts do look bearish for CapitaLand Investment, since they're expecting it to shrink faster than the industry.