Genetec Technology Berhad (KLSE:GENETEC) Yearly Results Just Came Out: Here's What Analysts Are Forecasting For This Year

It's been a good week for Genetec Technology Berhad (KLSE:GENETEC) shareholders, because the company has just released its latest annual results, and the shares gained 3.1% to RM2.36. It was a credible result overall, with revenues of RM224m and statutory earnings per share of RM0.079 both in line with analyst estimates, showing that Genetec Technology Berhad is executing in line with expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Genetec Technology Berhad

Taking into account the latest results, the most recent consensus for Genetec Technology Berhad from dual analysts is for revenues of RM312.3m in 2023 which, if met, would be a sizeable 40% increase on its sales over the past 12 months. Statutory earnings per share are predicted to bounce 39% to RM0.11. In the lead-up to this report, the analysts had been modelling revenues of RM310.5m and earnings per share (EPS) of RM0.12 in 2023. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at RM4.45.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Genetec Technology Berhad's growth to accelerate, with the forecast 40% annualised growth to the end of 2023 ranking favourably alongside historical growth of 15% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 16% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Genetec Technology Berhad is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at RM4.45, with the latest estimates not enough to have an impact on their price targets.

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 Genetec Technology Berhad going out as far as 2025, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 3 warning signs for Genetec Technology Berhad (of which 1 makes us a bit uncomfortable!) you should know about.

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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.