Here's What Analysts Are Forecasting For NationGate Holdings Berhad (KLSE:NATGATE) Following Its Earnings Miss

NationGate Holdings Berhad (KLSE:NATGATE) missed earnings with its latest full-year results, disappointing overly-optimistic forecasters. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at RM638m, statutory earnings missed forecasts by 11%, coming in at just RM0.029 per share. 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. 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 NationGate Holdings Berhad

After the latest results, the three analysts covering NationGate Holdings Berhad are now predicting revenues of RM1.24b in 2024. If met, this would reflect a huge 94% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 118% to RM0.064. Before this earnings report, the analysts had been forecasting revenues of RM1.19b and earnings per share (EPS) of RM0.064 in 2024. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a slight bump in to revenue forecasts.

It may not be a surprise to see thatthe analysts have reconfirmed their price target of RM1.63, implying that the uplift in revenue is not expected to greatly contribute to NationGate Holdings Berhad's valuation in the near term. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on NationGate Holdings Berhad, with the most bullish analyst valuing it at RM1.80 and the most bearish at RM1.51 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. It's clear from the latest estimates that NationGate Holdings Berhad's rate of growth is expected to accelerate meaningfully, with the forecast 94% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 4.0% p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 15% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect NationGate Holdings Berhad to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at RM1.63, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for NationGate Holdings Berhad going out to 2026, and you can see them free on our platform here..

You can also see whether NationGate Holdings Berhad is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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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.