Padini Holdings Berhad (KLSE:PADINI) just released its latest yearly report and things are not looking great. Results showed a clear earnings miss, with RM1.9b revenue coming in 4.2% lower than what the analystsexpected. Statutory earnings per share (EPS) of RM0.11 missed the mark badly, arriving some 23% below what was 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Padini Holdings Berhad after the latest results.
Taking into account the latest results, Padini Holdings Berhad's seven analysts currently expect revenues in 2027 to be RM1.90b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be RM0.11, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of RM2.01b and earnings per share (EPS) of RM0.15 in 2027. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a large cut to earnings per share estimates.
Check out our latest analysis for Padini Holdings Berhad
It'll come as no surprise then, to learn that the analysts have cut their price target 13% to RM1.65. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Padini Holdings Berhad at RM2.58 per share, while the most bearish prices it at RM1.15. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
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 Padini Holdings Berhad's revenue growth is expected to slow, with the forecast 1.5% annualised growth rate until the end of 2027 being well below the historical 12% 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 2.9% 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 Padini Holdings Berhad.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Padini Holdings Berhad. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Padini Holdings Berhad's future valuation.
With that in mind, we wouldn't be too quick to come to a conclusion on Padini Holdings Berhad. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Padini Holdings Berhad going out to 2029, and you can see them free on our platform here..
You still need to take note of risks, for example - Padini Holdings Berhad has 1 warning sign we think you should be aware of.
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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.