CSE Global Limited (SGX:544) just released its full-year report and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 5.6% to hit S$725m. Statutory earnings per share (EPS) came in at S$0.037, some 5.6% above whatthe analysts had expected. 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.
SGX:544 Earnings and Revenue Growth February 29th 2024
Following the latest results, CSE Global's three analysts are now forecasting revenues of S$826.3m in 2024. This would be a notable 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 19% to S$0.043. In the lead-up to this report, the analysts had been modelling revenues of S$786.9m and earnings per share (EPS) of S$0.044 in 2024. There doesn't appear to have been a major change in sentiment following the results, other than the modest lift to revenue estimates.
Even though revenue forecasts increased, there was no change to the consensus price target of S$0.63, suggesting the analysts are focused on earnings as the driver of value creation. 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. The most optimistic CSE Global analyst has a price target of S$0.71 per share, while the most pessimistic values it at S$0.57. This is a very narrow spread of estimates, implying either that CSE Global is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
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 CSE Global's growth to accelerate, with the forecast 14% annualised growth to the end of 2024 ranking favourably alongside historical growth of 11% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.9% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect CSE Global to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at S$0.63, 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. We have forecasts for CSE Global going out to 2026, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 1 warning sign for CSE Global that you need to be mindful of.
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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.