Need To Know: This Analyst Just Made A Substantial Cut To Their Panasonic Manufacturing Malaysia Berhad (KLSE:PANAMY) Estimates

One thing we could say about the covering analyst on Panasonic Manufacturing Malaysia Berhad (KLSE:PANAMY) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analyst seeing grey clouds on the horizon.

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Following the latest downgrade, the current consensus, from the one analyst covering Panasonic Manufacturing Malaysia Berhad, is for revenues of RM756m in 2026, which would reflect a measurable 3.3% reduction in Panasonic Manufacturing Malaysia Berhad's sales over the past 12 months. Statutory earnings per share are presumed to swell 16% to RM0.69. Prior to this update, the analyst had been forecasting revenues of RM993m and earnings per share (EPS) of RM1.08 in 2026. Indeed, we can see that the analyst is a lot more bearish about Panasonic Manufacturing Malaysia Berhad's prospects, administering a sizeable cut to revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for Panasonic Manufacturing Malaysia Berhad

The consensus price target fell 36% to RM6.88, with the weaker earnings outlook clearly leading analyst valuation estimates.

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 Panasonic Manufacturing Malaysia Berhad's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 3.3% to the end of 2026. This tops off a historical decline of 2.3% 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 11% annually. So it's pretty clear that, while it does have declining revenues, the analyst also expect Panasonic Manufacturing Malaysia Berhad to suffer worse than 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 Panasonic Manufacturing Malaysia Berhad. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower 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 Panasonic Manufacturing Malaysia Berhad.

That said, this analyst might have good reason to be negative on Panasonic Manufacturing Malaysia Berhad, given its declining profit margins. For more information, you can click here to discover this and the 1 other concern we've identified.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.