Some Glomac Berhad (KLSE:GLOMAC) Analysts Just Made A Major Cut To Next Year's Estimates

The analysts covering Glomac Berhad (KLSE:GLOMAC) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.

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Following the downgrade, the most recent consensus for Glomac Berhad from its dual analysts is for revenues of RM241m in 2026 which, if met, would be a substantial 26% increase on its sales over the past 12 months. Statutory earnings per share are presumed to leap 123% to RM0.021. Previously, the analysts had been modelling revenues of RM275m and earnings per share (EPS) of RM0.028 in 2026. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a large cut to earnings per share numbers as well.

See our latest analysis for Glomac Berhad

It'll come as no surprise then, to learn that the analysts have cut their price target 9.5% to RM0.34.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. For example, we noticed that Glomac Berhad's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 26% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 4.3% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 8.6% per year. So it looks like Glomac 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 analysts cut their earnings per share estimates, expecting a clear decline in business conditions. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better 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 Glomac Berhad.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for Glomac Berhad going out as far as 2028, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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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.