Telekom Malaysia Berhad (KLSE:TM) came out with its yearly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at RM12b, statutory earnings beat expectations by a notable 23%, coming in at RM0.53 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Telekom Malaysia Berhad after the latest results.
See our latest analysis for Telekom Malaysia Berhad
Taking into account the latest results, the consensus forecast from Telekom Malaysia Berhad's 20 analysts is for revenues of RM12.4b in 2025. This reflects a modest 6.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to drop 13% to RM0.46 in the same period. In the lead-up to this report, the analysts had been modelling revenues of RM12.6b and earnings per share (EPS) of RM0.44 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
The consensus price target was unchanged at RM7.59, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. The most optimistic Telekom Malaysia Berhad analyst has a price target of RM8.80 per share, while the most pessimistic values it at RM4.20. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
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. The analysts are definitely expecting Telekom Malaysia Berhad's growth to accelerate, with the forecast 6.2% annualised growth to the end of 2025 ranking favourably alongside historical growth of 2.2% per annum 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 4.0% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Telekom Malaysia Berhad is expected to grow much faster than its industry.