Shareholders in Sapura Energy Berhad (KLSE:SAPNRG) had a terrible week, as shares crashed 22% to RM0.035 in the week since its latest full-year results. The results don't look great, especially considering that statutory losses grew 623% toRM0.20 per share. Revenues of RM4.6b did beat expectations by 9.5%, but it looks like a bit of a cold comfort. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Sapura Energy Berhad

Taking into account the latest results, the most recent consensus for Sapura Energy Berhad from five analysts is for revenues of RM4.80b in 2024 which, if met, would be an okay 5.4% increase on its sales over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 95% to RM0.011. Before this earnings announcement, the analysts had been modelling revenues of RM4.70b and losses of RM0.018 per share in 2024. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a considerable decrease in loss per share in particular.

Despite these upgrades,the analysts have not made any major changes to their price target of RM0.046, implying that their latest estimates don't have a long term impact on what they think the stock is worth. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Sapura Energy Berhad, with the most bullish analyst valuing it at RM0.08 and the most bearish at RM0.02 per share. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the 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. One thing stands out from these estimates, which is that Sapura Energy Berhad is forecast to grow faster in the future than it has in the past, with revenues expected to display 5.4% annualised growth until the end of 2024. If achieved, this would be a much better result than the 2.2% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 1.0% per year. Not only are Sapura Energy Berhad's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at RM0.046, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Sapura Energy Berhad going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with Sapura Energy Berhad (including 2 which make us uncomfortable) .

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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