Revenue Downgrade: Here's What Analysts Forecast For SFP Tech Holdings Berhad (KLSE:SFPTECH)
The latest analyst coverage could presage a bad day for SFP Tech Holdings Berhad (KLSE:SFPTECH), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.
After this downgrade, SFP Tech Holdings Berhad's two analysts are now forecasting revenues of RM169m in 2024. This would be a substantial 36% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to bounce 50% to RM0.025. Prior to this update, the analysts had been forecasting revenues of RM191m and earnings per share (EPS) of RM0.027 in 2024. Indeed, we can see that analyst sentiment has declined measurably after the new consensus came out, with a measurable cut to revenue estimates and a small dip in EPS estimates to boot.
See our latest analysis for SFP Tech Holdings Berhad
It'll come as no surprise then, to learn that the analysts have cut their price target 6.6% to RM0.98.
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 analysts are definitely expecting SFP Tech Holdings Berhad's growth to accelerate, with the forecast 36% annualised growth to the end of 2024 ranking favourably alongside historical growth of 28% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that SFP Tech Holdings Berhad is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Given the stark change in sentiment, we'd understand if investors became more cautious on SFP Tech Holdings Berhad after today.
Still, the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.
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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.