Analysts Just Shaved Their Supercomnet Technologies Berhad (KLSE:SCOMNET) Forecasts Dramatically

The latest analyst coverage could presage a bad day for Supercomnet Technologies Berhad (KLSE:SCOMNET), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) estimates were cut sharply as the analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

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After the downgrade, the three analysts covering Supercomnet Technologies Berhad are now predicting revenues of RM191m in 2025. If met, this would reflect a major 29% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to leap 29% to RM0.045. Before this latest update, the analysts had been forecasting revenues of RM230m and earnings per share (EPS) of RM0.06 in 2025. Indeed, we can see that the analysts are a lot more bearish about Supercomnet Technologies Berhad's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for Supercomnet Technologies Berhad

It'll come as no surprise then, to learn that the analysts have cut their price target 27% to RM1.34.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Supercomnet Technologies Berhad's past performance and to peers in the same industry. The analysts are definitely expecting Supercomnet Technologies Berhad's growth to accelerate, with the forecast 29% annualised growth to the end of 2025 ranking favourably alongside historical growth of 2.9% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 19% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Supercomnet Technologies Berhad to grow faster than the wider industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Supercomnet Technologies Berhad. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Supercomnet Technologies Berhad.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for Supercomnet Technologies Berhad going out to 2027, and you can see them 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.