Beshom Holdings Berhad (KLSE:BESHOM) Analysts Just Slashed This Year's Revenue Estimates By 11%

Today is shaping up negative for Beshom Holdings Berhad (KLSE:BESHOM) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the downgrade, the latest consensus from Beshom Holdings Berhad's three analysts is for revenues of RM216m in 2023, which would reflect a decent 9.4% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of RM241m in 2023. The consensus view seems to have become more pessimistic on Beshom Holdings Berhad, noting the measurable cut to revenue estimates in this update.

View our latest analysis for Beshom Holdings Berhad

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Beshom Holdings Berhad's past performance and to peers in the same industry. One thing stands out from these estimates, which is that Beshom Holdings Berhad is forecast to grow faster in the future than it has in the past, with revenues expected to display 9.4% annualised growth until the end of 2023. If achieved, this would be a much better result than the 18% 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 20% annually for the foreseeable future. Although Beshom Holdings Berhad's revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They're also anticipating slower revenue growth than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Beshom Holdings Berhad after today.

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 1 other concern 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.