As you might know, ViTrox Corporation Berhad (KLSE:VITROX) last week released its latest quarterly, and things did not turn out so great for shareholders. ViTrox Corporation Berhad delivered a grave earnings miss, with both revenues (RM147m) and statutory earnings per share (RM0.012) falling badly short of analyst expectations. This is an important time for investors, as they can track a company’s performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
View our latest analysis for ViTrox Corporation Berhad
Taking into account the latest results, the consensus forecast from ViTrox Corporation Berhad’s eleven analysts is for revenues of RM755.3m in 2025. This reflects a substantial 40% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 91% to RM0.093. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM784.1m and earnings per share (EPS) of RM0.098 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.
The analysts made no major changes to their price target of RM3.87, suggesting the downgrades are not expected to have a long-term impact on ViTrox Corporation Berhad’s valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company’s valuation. There are some variant perceptions on ViTrox Corporation Berhad, with the most bullish analyst valuing it at RM5.15 and the most bearish at RM2.92 per share. As you can see, analysts are not all in agreement on the stock’s future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting ViTrox Corporation Berhad’s growth to accelerate, with the forecast 31% annualised growth to the end of 2025 ranking favourably alongside historical growth of 9.5% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 13% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect ViTrox Corporation Berhad to grow faster than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for ViTrox Corporation…
Read More: ViTrox Corporation Berhad Just Missed Earnings
