Inari Amertron Berhad (KLSE:INARI) came out with its first-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Inari Amertron Berhad reported a serious revenue miss, with sales of RM377m falling a huge 31% short of analyst estimates. The bright side is that statutory earnings per share of RM0.11 were in line with forecasts. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Inari Amertron Berhad

Following the latest results, Inari Amertron Berhad's 19 analysts are now forecasting revenues of RM1.78b in 2023. This would be a meaningful 19% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to step up 13% to RM0.12. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM1.80b and earnings per share (EPS) of RM0.12 in 2023. 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.

There were no changes to revenue or earnings estimates or the price target of RM3.27, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Inari Amertron Berhad analyst has a price target of RM4.20 per share, while the most pessimistic values it at RM2.48. 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 Inari Amertron Berhad shareholders.

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. The analysts are definitely expecting Inari Amertron Berhad's growth to accelerate, with the forecast 27% annualised growth to the end of 2023 ranking favourably alongside historical growth of 3.5% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 14% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Inari Amertron Berhad to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. 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 held steady at RM3.27, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Inari Amertron Berhad analysts - going out to 2025, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Inari Amertron Berhad you should know about.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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