Some Beshom Holdings Berhad (KLSE:BESHOM) Analysts Just Made A Major Cut To Next Year's Estimates

The analysts covering Beshom Holdings Berhad (KLSE:BESHOM) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.

Following the latest downgrade, Beshom Holdings Berhad's dual analysts currently expect revenues in 2024 to be RM172m, approximately in line with the last 12 months. Statutory earnings per share are expected to be RM0.055, roughly flat on the last 12 months. Before this latest update, the analysts had been forecasting revenues of RM196m and earnings per share (EPS) of RM0.07 in 2024. Indeed, we can see that the analysts are a lot more bearish about Beshom Holdings Berhad's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for Beshom Holdings Berhad

It'll come as no surprise then, to learn that the analysts have cut their price target 5.3% to RM0.97.

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. We would also point out that the forecast 1.0% annualised revenue decline to the end of 2024 is better than the historical trend, which saw revenues shrink 17% annually over the past five years By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 8.3% per year. So while a broad number of companies are forecast to grow, unfortunately Beshom Holdings Berhad is expected to see its sales affected worse than other companies in the industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Beshom Holdings Berhad.

That said, the analysts might have good reason to be negative on Beshom Holdings Berhad, given the risk of cutting its dividend. Learn more, and discover the 2 other warning signs we've identified, for 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.