CapitaLand Investment Limited Just Missed Earnings

The analysts might have been a bit too bullish on CapitaLand Investment Limited (SGX:9CI), given that the company fell short of expectations when it released its yearly results last week. Results showed a clear earnings miss, with S$2.8b revenue coming in 2.8% lower than what the analystsexpected. Statutory earnings per share (EPS) of S$0.035 missed the mark badly, arriving some 76% below what was expected. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for CapitaLand Investment


Following the latest results, CapitaLand Investment’s ten analysts are now forecasting revenues of S$3.11b in 2024. This would be a meaningful 12% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 420% to S$0.19. Before this earnings report, the analysts had been forecasting revenues of S$3.04b and earnings per share (EPS) of S$0.19 in 2024. So it looks like there’s been no major change in sentiment following the latest results, although the analysts have made a small lift in to revenue forecasts.

Even though revenue forecasts increased, there was no change to the consensus price target of S$3.87, suggesting the analysts are focused on earnings as the driver of value creation. 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. Currently, the most bullish analyst values CapitaLand Investment at S$4.44 per share, while the most bearish prices it at S$3.30. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the CapitaLand Investment’s past performance and to peers in the same industry. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 12% growth on an annualised basis. That is in line with its 13% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 0.3% annually. So not only is CapitaLand Investment expected to maintain its revenue growth despite the wider downturn, it’s also forecast to grow faster than the industry as a whole.

The Bottom Line

The most important thing to take away is that there’s been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, they also lifted their revenue estimates, and the company is expected to perform better than the wider industry. The consensus price target held steady at S$3.87, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn’t be too quick to come to a conclusion on CapitaLand Investment. Long-term earnings power is much more important than next year’s profits. We have forecasts for CapitaLand Investment going out to 2026, and you can see them free on our platform here.

That said, it’s still necessary to consider the ever-present spectre of investment risk. We’ve identified 4 warning signs with CapitaLand Investment (at least 2 which can’t be ignored) , and understanding these should be part of your investment process.

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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.

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