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UOL Group Limited (SGX:U14) just released its annual report and things are looking bullish. UOL Group delivered a significant beat with revenue hitting S$2.8b and statutory EPS reaching S$0.42, both beating estimates by more than 10%. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for UOL Group
Taking into account the latest results, UOL Group's seven analysts currently expect revenues in 2025 to be S$2.80b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be S$0.43, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of S$2.78b and earnings per share (EPS) of S$0.39 in 2025. Although the revenue estimates have not really changed, we can see there's been a nice increase in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.
The consensus price target was unchanged at S$7.37, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values UOL Group at S$9.20 per share, while the most bearish prices it at S$5.20. 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 UOL Group shareholders.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that UOL Group's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 0.06% growth on an annualised basis. This is compared to a historical growth rate of 7.4% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 0.2% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than UOL Group.