The Consensus EPS Estimates For Sunview Group Berhad (KLSE:SUNVIEW) Just Fell A Lot

Today is shaping up negative for Sunview Group Berhad (KLSE:SUNVIEW) shareholders, with the covering analyst delivering a substantial negative revision to next year's forecasts. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analyst seeing grey clouds on the horizon.

Following the downgrade, the consensus from solo analyst covering Sunview Group Berhad is for revenues of RM422m in 2025, implying a not inconsiderable 16% decline in sales compared to the last 12 months. Per-share earnings are expected to jump 68% to RM0.035. Before this latest update, the analyst had been forecasting revenues of RM539m and earnings per share (EPS) of RM0.045 in 2025. Indeed, we can see that the analyst is a lot more bearish about Sunview Group Berhad's prospects, administering a sizeable cut to revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for Sunview Group Berhad

The consensus price target fell 22% to RM0.88, with the weaker earnings outlook clearly leading analyst valuation estimates.

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. We would highlight that sales are expected to reverse, with a forecast 13% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 48% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 13% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Sunview Group Berhad is expected to lag the wider industry.

The Bottom Line

The biggest issue in the new estimates is that the analyst has reduced their earnings per share estimates, suggesting business headwinds lay ahead for Sunview Group Berhad. Unfortunately the analyst also downgraded their revenue estimates, and industry data suggests that Sunview Group Berhad's revenues are expected to grow slower than the wider market. With a serious cut to next year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Sunview Group Berhad.

As you can see, the covering analyst clearly isn't bullish, and there might be good reason for that. We've identified some potential issues with Sunview Group Berhad's financials, such as concerns around earnings quality. For more information, you can click here to discover this and the 3 other risks we've identified.

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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.