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VEEM Ltd (ASX:VEE) just released its yearly report and things are looking bullish. The company beat expectations with revenues of AU$81m arriving 7.3% ahead of forecasts. Statutory earnings per share (EPS) were AU$0.051, 7.1% ahead of estimates. The analyst 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on VEEM after the latest results.
Check out our latest analysis for VEEM
Following the latest results, VEEM's lone analyst are now forecasting revenues of AU$86.9m in 2025. This would be a modest 7.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to expand 11% to AU$0.057. Before this earnings report, the analyst had been forecasting revenues of AU$87.4m and earnings per share (EPS) of AU$0.055 in 2025. The analyst seem to have become more bullish on the business, judging by their new earnings per share estimates.
The consensus price target rose 50% to AU$2.25, suggesting that higher earnings estimates flow through to the stock's valuation as well.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that VEEM's revenue growth is expected to slow, with the forecast 7.8% annualised growth rate until the end of 2025 being well below the historical 10% p.a. growth over the last five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 0.3% annually. So it's clear that despite the slowdown in growth, VEEM is still expected to grow meaningfully faster than the wider industry.
The Bottom Line
The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards VEEM following these results. On the plus side, they made no changes to their revenue estimates - and they expect it to perform better than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.