Need To Know: Analysts Are Much More Bullish On TRC Synergy Berhad (KLSE:TRC) Revenues

TRC Synergy Berhad (KLSE:TRC) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the upgrade, the consensus from dual analysts covering TRC Synergy Berhad is for revenues of RM434m in 2024, implying a chunky 9.6% decline in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of RM384m in 2024. It looks like there's been a clear increase in optimism around TRC Synergy Berhad, given the substantial gain in revenue forecasts.

See our latest analysis for TRC Synergy Berhad

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. One more thing stood out to us about these estimates, and it's the idea that TRC Synergy Berhad's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 9.6% to the end of 2024. This tops off a historical decline of 7.2% a year over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 13% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect TRC Synergy Berhad to suffer worse than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for TRC Synergy Berhad this year. They also expect company revenue to perform worse than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at TRC Synergy Berhad.

Analysts are clearly in love with TRC Synergy Berhad at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as its declining profit margins. You can learn more, and discover the 3 other risks 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 backed by insiders.

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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.