Bearish: This Analyst Is Revising Their Wegmans Holdings Berhad (KLSE:WEGMANS) Revenue and EPS Prognostications

Today is shaping up negative for Wegmans Holdings Berhad (KLSE:WEGMANS) shareholders, with the covering analyst delivering a substantial negative revision to this year's forecasts. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analyst has soured majorly on the business.

Following the latest downgrade, the current consensus, from the sole analyst covering Wegmans Holdings Berhad, is for revenues of RM100m in 2023, which would reflect a concerning 27% reduction in Wegmans Holdings Berhad's sales over the past 12 months. Statutory earnings per share are anticipated to crater 47% to RM0.015 in the same period. Before this latest update, the analyst had been forecasting revenues of RM131m and earnings per share (EPS) of RM0.027 in 2023. It looks like analyst sentiment has declined substantially, with a pretty serious reduction to revenue estimates and a pretty serious decline to earnings per share numbers as well.

Check out our latest analysis for Wegmans Holdings Berhad

It'll come as no surprise then, to learn that the analyst has cut their price target 29% to RM0.15.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with a forecast 27% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 11% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 8.7% annually for the foreseeable future. It's pretty clear that Wegmans Holdings Berhad's revenues are expected to perform substantially worse than the wider 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 Wegmans Holdings Berhad's revenues are expected to grow slower than the wider market. After such a stark change in sentiment from the analyst, we'd understand if readers now felt a bit wary of Wegmans Holdings Berhad.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Wegmans Holdings Berhad going out as far as 2025, and you can see them free 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 that insiders are buying.

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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.