As you might know, Southern Score Builders Berhad (KLSE:SSB8) last week released its latest full-year, and things did not turn out so great for shareholders. Southern Score Builders Berhad missed analyst forecasts, with revenues of RM491m and statutory earnings per share (EPS) of RM0.029, falling short by 4.6% and 4.8% respectively. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Southern Score Builders Berhad after the latest results.
Taking into account the latest results, the current consensus from Southern Score Builders Berhad's three analysts is for revenues of RM688.3m in 2027. This would reflect a substantial 40% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 45% to RM0.043. Before this earnings report, the analysts had been forecasting revenues of RM710.9m and earnings per share (EPS) of RM0.043 in 2027. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.
See our latest analysis for Southern Score Builders Berhad
The consensus has reconfirmed its price target of RM0.76, showing that the analysts don't expect weaker revenue expectations next year to have a material impact on Southern Score Builders Berhad's market value. 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 Southern Score Builders Berhad, with the most bullish analyst valuing it at RM0.80 and the most bearish at RM0.70 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Southern Score Builders Berhad'shistorical trends, as the 40% annualised revenue growth to the end of 2027 is roughly in line with the 35% 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 19% per year. So it's pretty clear that Southern Score Builders Berhad is forecast to grow substantially faster than its industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also downgraded Southern Score Builders Berhad's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at RM0.76, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Southern Score Builders Berhad analysts - going out to 2029, and you can see them free on our platform here.
You can also see our analysis of Southern Score Builders Berhad's Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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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.