Power Root Berhad( KLSE:PWROOT ) just released its latest yearly report and things are not looking great. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at RM338m, statutory earnings missed forecasts by an incredible 22%, coming in at just RM0.039 per share. This is an important time for investors, as they can track a company's performance in its report, look at what expert is 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 estimate to see what could be in store for next year.
Taking into account the latest results, the current consensus from Power Root Berhad's single analyst is for revenues of RM368.0m in 2027. This would reflect a meaningful 8.8% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 76% to RM0.07. In the lead-up to this report, the analyst had been modelling revenues of RM390.5m and earnings per share (EPS) of RM0.076 in 2027. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.
Check out our latest analysis for Power Root Berhad
The analyst made no major changes to their price target of RM1.09, suggesting the downgrades are not expected to have a long-term impact on Power Root Berhad's valuation.
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. It's clear from the latest estimates that Power Root Berhad's rate of growth is expected to accelerate meaningfully, with the forecast 8.8% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 3.0% p.a. 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 5.3% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Power Root Berhad to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded Power Root Berhad's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target held steady at RM1.09, with the latest estimates not enough to have an impact on their price target.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2029, which can be seen for free on our platform here.
And what about risks? Every company has them, and we've spotted 2 warning signs for Power Root Berhad (of which 1 is a bit concerning!) you should know about.
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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.
