Revenue Beat: Seatrium Limited Beat Analyst Estimates By 22%

Yahoo

3 days ago

As you might know, Seatrium Limited (SGX:5E2) just kicked off its latest half-yearly results with some very strong numbers. Statutory earnings beat expectations, with revenues of S$5.4b coming in a massive 22% ahead of forecasts, while earnings per share (eps) of S$0.042 beat expectations by 5.7%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.
Taking into account the latest results, the current consensus, from the nine analysts covering Seatrium, is for revenues of S$9.85b in 2025. This implies a small 6.9% reduction in Seatrium's revenue over the past 12 months. Statutory earnings per share are predicted to leap 23% to S$0.096. Before this earnings report, the analysts had been forecasting revenues of S$9.49b and earnings per share (EPS) of S$0.11 in 2025. While next year's revenue estimates increased, there was also a real cut to EPS expectations, suggesting the consensus has a bit of a mixed view of these results.
Check out our latest analysis for Seatrium
The consensus price target was unchanged at S$2.76, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Seatrium, with the most bullish analyst valuing it at S$2.96 and the most bearish at S$2.50 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 13% annualised decline to the end of 2025. That is a notable change from historical growth of 44% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 9.6% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Seatrium is expected to lag the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider 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 Seatrium going out to 2027, and you can see them free on our platform here.
It might also be worth considering whether Seatrium's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
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.