Some Analysts Just Cut Their Samaiden Group Berhad (KLSE:SAMAIDEN) Estimates

The latest analyst coverage could presage a bad day for Samaiden Group Berhad (KLSE:SAMAIDEN), 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.

Following the latest downgrade, the current consensus, from the four analysts covering Samaiden Group Berhad, is for revenues of RM175m in 2023, which would reflect a noticeable 2.3% reduction in Samaiden Group Berhad's sales over the past 12 months. Before the latest update, the analysts were foreseeing RM202m of revenue in 2023. It looks like forecasts have become a fair bit less optimistic on Samaiden Group Berhad, given the measurable cut to revenue estimates.

View our latest analysis for Samaiden Group Berhad

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Samaiden Group Berhad's past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with a forecast 2.3% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 28% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 13% annually for the foreseeable future. It's pretty clear that Samaiden Group Berhad's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They're also anticipating slower revenue growth than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Samaiden Group Berhad after today.

After a downgrade like this, it's pretty clear that previous forecasts were too optimistic. What's more, we've spotted several possible issues with Samaiden Group Berhad's business, like concerns around earnings quality. Learn more, and discover the 2 other concerns we've identified, for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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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.