Yahoo Finance Here's What Analysts Are Forecasting For Heineken Malaysia Berhad (KLSE:HEIM) After Its Full-Year Results
Last week saw the newest full-year earnings release from Heineken Malaysia Berhad (KLSE:HEIM), an important milestone in the company's journey to build a stronger business. It was a credible result overall, with revenues of RM2.6b and statutory earnings per share of RM1.28 both in line with analyst estimates, showing that Heineken Malaysia Berhad is executing in line with expectations. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for Heineken Malaysia Berhad
Taking into account the latest results, the most recent consensus for Heineken Malaysia Berhad from ten analysts is for revenues of RM2.76b in 2024. If met, it would imply a reasonable 4.8% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 5.0% to RM1.34. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM2.80b and earnings per share (EPS) of RM1.38 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.
The consensus price target held steady at RM28.28, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Heineken Malaysia Berhad analyst has a price target of RM29.94 per share, while the most pessimistic values it at RM25.21. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Heineken Malaysia Berhad's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Heineken Malaysia Berhad's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 4.8% growth on an annualised basis. This is compared to a historical growth rate of 6.5% over the past five years. Compare this to the 6 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 4.5% per year. So it's pretty clear that, while Heineken Malaysia Berhad's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at RM28.28, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Heineken Malaysia Berhad. Long-term earnings power is much more important than next year's profits. We have forecasts for Heineken Malaysia Berhad going out to 2026, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Heineken Malaysia Berhad , and understanding this should be part of your investment process.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
