It’s been a good week for Singapore Telecommunications Limited (SGX:Z74) shareholders, as the company just released its latest half-year results, and shares gained 6.7% to S$2.69. The results were positive, with revenue of S$7.3 billion beating analysts’ expectations of 2.1%. It’s an important time for investors, as they can follow a company’s performance in its report, watch what experts predict for next year, and see if there’s been a change in company expectations. ‘company. We thought readers would find it interesting to see analysts’ latest post-earnings (statutory) forecasts for next year.
Check out our latest analysis for Singapore Telecommunications
Given the latest results, the current consensus of Singapore Telecommunications’ 17 analysts expects revenues of S$15.3 billion in 2023, which would reflect a credible 2.1% increase in sales over the past 12 months. . Statutory earnings per share are expected to increase by 11% to reach S$0.15. Looking ahead to this report, analysts had modeled revenues of S$15.4 billion and earnings per share (EPS) of S$0.15 in 2023. Consensus analysts appear to have seen nothing in these results which would have changed. their view of the business, given that there has been no major change in their estimates.
Analysts reconfirmed their price target of S$3.19, showing that the activity is going well and in line with expectations. Fixing on a single price target, however, can be unwise because the consensus target is actually the average of the analysts’ price targets. As a result, some investors like to look at the range of estimates to see if there are any differing opinions on the company’s valuation. Currently, the most bullish analyst values Singapore Telecommunications at S$4.40 per share, while the most bearish one values it at S$2.72. These price targets show that analysts have differing opinions on the company, but the estimates don’t vary enough to suggest to us that some are betting on wild success or total failure.
These estimates are interesting, but it may be useful to draw broader lines when seeing how the predictions compare, both to Singapore Telecommunications’ past performance and to peers in the same industry. For example, we have noticed that the growth rate of Singapore Telecommunications is expected to accelerate significantly, with revenues expected to show 4.3% growth by the end of 2023 on an annualized basis. That’s well above its historic decline of 3.2% per year over the past five years. In contrast, our data suggests that other companies (with analyst coverage) in a similar industry should see revenue growth of 3.6% annually. So it looks like Singapore Telecommunications is set to grow at about the same rate as the industry as a whole.
The most obvious conclusion is that there has been no major shift in the company’s outlook lately, with analysts holding their earnings forecast flat, in line with previous estimates. They also reconfirmed their revenue estimates, with the company expected to grow at roughly the same rate as the overall industry. There was no real change from the consensus price target, suggesting that the company’s intrinsic value has not undergone major changes with the latest estimates.
With that in mind, we wouldn’t be too quick to come to a conclusion on Singapore telecommunications. Long-term earnings power is much more important than next year’s earnings. We have estimates – from several Singapore Telecommunications analysts – going out to 2025, and you can view them for free on our platform here.
It should also be noted that we found 1 Singapore Telecom Warning Sign that you need to consider.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.
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