Farm Fresh Berhad( KLSE:FFB ) just released its latest second-quarter results and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 6.7% to hit RM295m. Statutory earnings per share (EPS) came in at RM0.019, some 9.6% above whatthe analysts had expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
After the latest results, the 13 analysts covering Farm Fresh Berhad are now predicting revenues of RM1.16b in 2026. If met, this would reflect a notable 11% improvement in revenue compared to the last 12 months. Per-share earnings are expected to expand 14% to RM0.075. In the lead-up to this report, the analysts had been modelling revenues of RM1.15b and earnings per share (EPS) of RM0.074 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
View our latest analysis for Farm Fresh Berhad
The consensus price target rose 14% to RM2.72despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Farm Fresh Berhad's earnings by assigning a price premium. 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 Farm Fresh Berhad, with the most bullish analyst valuing it at RM3.03 and the most bearish at RM1.95 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
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 can infer from the latest estimates that forecasts expect a continuation of Farm Fresh Berhad'shistorical trends, as the 23% annualised revenue growth to the end of 2026 is roughly in line with the 21% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 2.8% per year. So although Farm Fresh Berhad is expected to maintain its revenue growth rate, it's definitely expected 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, there were no major changes to revenue forecasts, with the business still expected to grow faster 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 Farm Fresh Berhad. Long-term earnings power is much more important than next year's profits. We have forecasts for Farm Fresh Berhad going out to 2028, and you can see them free on our platform here.
You can also view our analysis of Farm Fresh Berhad's balance sheet, and whether we think Farm Fresh Berhad is carrying too much debt, for free on our platform here.
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