It's shaping up to be a tough period for Nestlé (Malaysia) Berhad (KLSE:NESTLE), which a week ago released some disappointing yearly results that could have a notable impact on how the market views the stock. Nestlé (Malaysia) Berhad missed earnings this time around, with RM6.2b revenue coming in 2.3% below what the analysts had modelled. Statutory earnings per share (EPS) of RM1.77 also fell short of expectations by 18%. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for Nestlé (Malaysia) Berhad
Taking into account the latest results, the consensus forecast from Nestlé (Malaysia) Berhad's twelve analysts is for revenues of RM6.49b in 2025. This reflects a credible 4.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to swell 15% to RM2.03. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM6.69b and earnings per share (EPS) of RM2.53 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.
It'll come as no surprise then, to learn that the analysts have cut their price target 17% to RM81.56. 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. The most optimistic Nestlé (Malaysia) Berhad analyst has a price target of RM102 per share, while the most pessimistic values it at RM60.00. 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.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Nestlé (Malaysia) Berhad's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 4.2% growth on an annualised basis. This is compared to a historical growth rate of 5.6% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.7% annually. Factoring in the forecast slowdown in growth, it looks like Nestlé (Malaysia) Berhad is forecast to grow at about the same rate as the wider industry.