It's shaping up to be a tough period for Sunway Construction Group Berhad (KLSE:SUNCON), which a week ago released some disappointing first-quarter results that could have a notable impact on how the market views the stock. Earnings fell badly short of analyst estimates, with RM605m revenues missing by 18%, and statutory earnings per share (EPS) of RM0.025 falling short of forecasts by some -17%. 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. 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 Sunway Construction Group Berhad
Taking into account the latest results, the current consensus from Sunway Construction Group Berhad's 13 analysts is for revenues of RM3.17b in 2024. This would reflect a meaningful 13% increase on its revenue over the past 12 months. Per-share earnings are expected to climb 16% to RM0.14. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM3.19b and earnings per share (EPS) of RM0.14 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
There were no changes to revenue or earnings estimates or the price target of RM4.65, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Sunway Construction Group Berhad, with the most bullish analyst valuing it at RM6.15 and the most bearish at RM3.09 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Sunway Construction Group Berhad's rate of growth is expected to accelerate meaningfully, with the forecast 18% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 10% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 13% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Sunway Construction Group Berhad to grow faster than the wider industry.