Malayan Banking Berhad( KLSE:MAYBANK ) missed earnings with its latest first-quarter results, disappointing overly-optimistic forecasters. Malayan Banking Berhad reported an earnings miss, with RM6.9b revenues falling 12% short of analyst models, and statutory earnings per share (EPS) of RM0.21 also coming in slightly below 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the most recent consensus for Malayan Banking Berhad from 19 analysts is for revenues of RM30.7b in 2026. If met, it would imply an okay 7.8% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 3.5% to RM0.89. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM31.6b and earnings per share (EPS) of RM0.91 in 2026. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.
See our latest analysis for Malayan Banking Berhad
The analysts made no major changes to their price target of RM12.10, suggesting the downgrades are not expected to have a long-term impact on Malayan Banking 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. Currently, the most bullish analyst values Malayan Banking Berhad at RM15.00 per share, while the most bearish prices it at RM10.90. 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.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Malayan Banking Berhad's growth to accelerate, with the forecast 11% annualised growth to the end of 2026 ranking favourably alongside historical growth of 7.3% 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 6.1% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Malayan Banking 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 Malayan Banking Berhad. They also downgraded Malayan Banking Berhad's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on Malayan Banking Berhad. Long-term earnings power is much more important than next year's profits. We have forecasts for Malayan Banking Berhad going out to 2028, and you can see them free on our platform here.
Before you take the next step you should know about the 1 warning sign for Malayan Banking Berhad that we have uncovered.
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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.
