One Analyst Just Shaved Their Panasonic Manufacturing Malaysia Berhad (KLSE:PANAMY) Forecasts Dramatically

The latest analyst coverage could presage a bad day for Panasonic Manufacturing Malaysia Berhad (KLSE:PANAMY), with the covering analyst 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 analyst factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the downgrade, the most recent consensus for Panasonic Manufacturing Malaysia Berhad from its one analyst is for revenues of RM1.0b in 2025 which, if met, would be a meaningful 15% increase on its sales over the past 12 months. Statutory earnings per share are presumed to jump 31% to RM1.28. Before this latest update, the analyst had been forecasting revenues of RM1.2b and earnings per share (EPS) of RM1.54 in 2025. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a real cut to earnings per share numbers as well.

See our latest analysis for Panasonic Manufacturing Malaysia Berhad

The consensus price target fell 17% to RM16.60, 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 thing stands out from these estimates, which is that Panasonic Manufacturing Malaysia Berhad is forecast to grow faster in the future than it has in the past, with revenues expected to display 15% annualised growth until the end of 2025. If achieved, this would be a much better result than the 2.5% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 10% annually. So it looks like Panasonic Manufacturing Malaysia Berhad is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away is that the analyst cut their earnings per share estimates, expecting a clear decline in business conditions. While the analyst did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

Worse yet, our risk analysis suggests that Panasonic Manufacturing Malaysia Berhad may find it hard to maintain its dividend following these downgrades. What makes us say that? Learn more by visiting our risks dashboard 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.