Singapore Press Holdings Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
Singapore Press Holdings Limited (SGX:T39) just released its latest quarterly report and things are not looking great. Results showed a clear earnings miss, with S$227m revenue coming in 7.6% lower than what the analystsexpected. Statutory earnings per share (EPS) of S$0.02 missed the mark badly, arriving some 29% below what was expected. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for Singapore Press Holdings
Taking into account the latest results, the four analysts covering Singapore Press Holdings provided consensus estimates of S$896.6m revenue in 2020, which would reflect a discernible 5.9% decline on its sales over the past 12 months. Statutory earnings per share are forecast to tumble 29% to S$0.085 in the same period. In the lead-up to this report, the analysts had been modelling revenues of S$962.7m and earnings per share (EPS) of S$0.096 in 2020. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.
The consensus price target fell 19% to S$1.67, with the weaker earnings outlook clearly leading valuation estimates. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Singapore Press Holdings, with the most bullish analyst valuing it at S$2.28 and the most bearish at S$1.39 per share. 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.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. One thing that stands out from these estimates is that revenues are expected to keep falling, roughly in line with the historical decline of 5.4% per annum over the past five years. Yet our data suggests that other companies (with analyst coverage) in the industry are expected, in aggregate, to see their revenues rise 8.9% over the coming year. So it looks like Singapore Press Holdings' revenues are expected to decline at a slower rate than 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. On the negative side, they also downgraded their revenue estimates, and forecasts imply revenues will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
With that in mind, we wouldn't be too quick to come to a conclusion on Singapore Press Holdings. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Singapore Press Holdings analysts - going out to 2022, and you can see them free on our platform here.
You still need to take note of risks, for example - Singapore Press Holdings has 5 warning signs (and 1 which doesn't sit too well with us) we think you should know about.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
