Hume Cement Industries Berhad (KLSE:HUMEIND) came out with its annual results last week, and we wanted to see how the business is performing and what industry forecasts think of the company following this report. Revenues were RM1.2b, 15% below analyst expectations, although losses didn't appear to worsen significantly, with a per-share statutory loss of RM0.36 being in line with what the analyst forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on Hume Cement Industries Berhad after the latest results.
Check out our latest analysis for Hume Cement Industries Berhad
Following the latest results, Hume Cement Industries Berhad's sole analyst are now forecasting revenues of RM1.42b in 2025. This would be a notable 18% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 24% to RM0.36. Yet prior to the latest earnings, the analyst had been anticipated revenues of RM1.51b and earnings per share (EPS) of RM0.36 in 2025. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.
The consensus price target rose 47% to RM5.40, with the analyst apparently satisfied with the business performance despite lower revenue forecasts.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2025 brings more of the same, according to the analyst, with revenue forecast to display 18% growth on an annualised basis. That is in line with its 16% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 0.6% annually. So it's pretty clear that Hume Cement Industries Berhad is forecast to grow substantially faster than its industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analyst reconfirming that the business is performing in line with their previous earnings per share estimates. They also downgraded Hume Cement Industries Berhad's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Still, earnings per share are more important to value creation for shareholders. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.