99 Speed Mart Retail Holdings Berhad Recorded A 10% Miss On Revenue: Analysts Are Revisiting Their Models

99 Speed Mart Retail Holdings Berhad (KLSE:99SMART) shareholders are probably feeling a little disappointed, since its shares fell 3.3% to RM3.53 in the week after its latest second-quarter results. Revenues were RM3.1b, 10% below analyst expectations, although losses didn’t appear to worsen significantly, with a per-share statutory loss of RM0.073 being in line with what the analysts forecast. 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. With this in mind, we’ve gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the consensus forecast from 99 Speed Mart Retail Holdings Berhad’s twelve analysts is for revenues of RM13.0b in 2026. This reflects a credible 5.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 10.0% to RM0.087. Before this earnings report, the analysts had been forecasting revenues of RM13.0b and earnings per share (EPS) of RM0.087 in 2026. The consensus analysts don’t seem to have seen anything in these results that would have changed their view on the business, given there’s been no major change to their estimates.

View our latest analysis for 99 Speed Mart Retail Holdings Berhad

The analysts reconfirmed their price target of RM4.02, showing that the business is executing well and in line with expectations. 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. The most optimistic 99 Speed Mart Retail Holdings Berhad analyst has a price target of RM4.41 per share, while the most pessimistic values it at RM2.94. 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of 99 Speed Mart Retail Holdings Berhad’shistorical trends, as the 12% annualised revenue growth to the end of 2026 is roughly in line with the 11% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 11% annually. So although 99 Speed Mart Retail Holdings Berhad is expected to maintain its revenue growth rate, it’s only growing at about the rate of the wider 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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company’s earnings is a lot more important than next year. We have forecasts for 99 Speed Mart Retail Holdings Berhad going out to 2028, and you can see them free on our platform here.

We also provide an overview of the 99 Speed Mart Retail Holdings Berhad Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.