Engtex Group Berhad Just Missed EPS By 19%: Here's What Analysts Think Will Happen Next

It's been a sad week for Engtex Group Berhad (KLSE:ENGTEX), who've watched their investment drop 17% to RM0.98 in the week since the company reported its full-year result. Statutory earnings per share of RM0.023 unfortunately missed expectations by 19%, although it was encouraging to see revenues of RM1.5b exceed expectations by 2.4%. 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. 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 Engtex Group Berhad

After the latest results, the two analysts covering Engtex Group Berhad are now predicting revenues of RM1.53b in 2024. If met, this would reflect a satisfactory 4.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 274% to RM0.086. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM1.53b and earnings per share (EPS) of RM0.068 in 2024. Although the revenue estimates have not really changed, we can see there's been a great increase in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 34% to RM1.27.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Engtex Group Berhad's revenue growth is expected to slow, with the forecast 4.3% annualised growth rate until the end of 2024 being well below the historical 6.8% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.1% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Engtex Group Berhad.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Engtex Group Berhad's earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Engtex Group Berhad. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

It is also worth noting that we have found 3 warning signs for Engtex Group Berhad (1 is significant!) that you need to take into consideration.

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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.