It's been a good week for SIA Engineering Company Limited (SGX:S59) shareholders, because the company has just released its latest yearly results, and the shares gained 6.6% to S$2.41. Results overall were respectable, with statutory earnings of S$0.12 per share roughly in line with what the analysts had forecast. Revenues of S$1.2b came in 2.6% ahead of analyst predictions. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Following the latest results, SIA Engineering's four analysts are now forecasting revenues of S$1.34b in 2026. This would be an okay 7.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 12% to S$0.14. In the lead-up to this report, the analysts had been modelling revenues of S$1.31b and earnings per share (EPS) of S$0.13 in 2026. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

View our latest analysis for SIA Engineering

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of S$2.70, suggesting that the forecast performance does not have a long term impact on the company's valuation. 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 SIA Engineering, with the most bullish analyst valuing it at S$2.80 and the most bearish at S$2.59 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the SIA Engineering's past performance and to peers in the same industry. It's pretty clear that there is an expectation that SIA Engineering's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 7.7% growth on an annualised basis. This is compared to a historical growth rate of 15% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.9% annually. Even after the forecast slowdown in growth, it seems obvious that SIA Engineering is also expected to grow faster than the wider industry.

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The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around SIA Engineering's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for SIA Engineering going out to 2028, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified  1 warning sign for SIA Engineering that you should be aware of.

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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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