This Panasonic Manufacturing Malaysia Berhad (KLSE:PANAMY) Analyst Is Way More Bearish Than They Used To Be

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. 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 current consensus from Panasonic Manufacturing Malaysia Berhad's solitary analyst is for revenues of RM898m in 2025 which - if met - would reflect a reasonable 5.6% increase on its sales over the past 12 months. Per-share earnings are expected to increase 3.9% to RM0.94. Previously, the analyst had been modelling revenues of RM1.0b and earnings per share (EPS) of RM1.28 in 2025. Indeed, we can see that the analyst is a lot more bearish about Panasonic Manufacturing Malaysia Berhad's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Panasonic Manufacturing Malaysia Berhad

It'll come as no surprise then, to learn that the analyst has cut their price target 16% to RM14.00.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. 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 5.6% annualised growth until the end of 2025. If achieved, this would be a much better result than the 2.3% 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 11% annually for the foreseeable future. So although Panasonic Manufacturing Malaysia Berhad's revenue growth is expected to improve, it is still expected to grow slower than the industry.

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. Unfortunately the analyst also downgraded their revenue estimates, and industry data suggests that Panasonic Manufacturing Malaysia Berhad's revenues are expected to grow 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.

After a downgrade like this one, it's pretty clear that previous forecasts were too optimistic. Worse, it's possible that the forecast future income could struggle to cover Panasonic Manufacturing Malaysia Berhad'sdividend payments. What makes us say that? Learn more by visiting our risks dashboard on our platform here.

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.