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Investors in Sembcorp Industries Ltd (SGX:U96) had a good week, as its shares rose 5.9% to close at S$6.09 following the release of its full-year results. Sembcorp Industries missed revenue estimates by 4.9%, coming in atS$6.4b, although statutory earnings per share (EPS) of S$0.56 beat expectations, coming in 3.3% ahead of analyst estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
View our latest analysis for Sembcorp Industries
Taking into account the latest results, the consensus forecast from Sembcorp Industries' eleven analysts is for revenues of S$6.90b in 2025. This reflects a credible 7.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 8.1% to S$0.62. Before this earnings report, the analysts had been forecasting revenues of S$6.92b and earnings per share (EPS) of S$0.56 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
There's been no major changes to the consensus price target of S$7.08, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Sembcorp Industries analyst has a price target of S$8.00 per share, while the most pessimistic values it at S$6.20. This is a very narrow spread of estimates, implying either that Sembcorp Industries is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 7.6% growth on an annualised basis. That is in line with its 6.6% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.5% annually. So it's pretty clear that Sembcorp Industries is forecast to grow substantially faster than its industry.