Greatech Technology Berhad Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Greatech Technology Berhad (KLSE:GREATEC) just released its latest quarterly report and things are not looking great. Greatech Technology Berhad missed earnings this time around, with RM206m revenue coming in 2.3% below what the analysts had modelled. Statutory earnings per share (EPS) of RM0.038 also fell short of expectations by 10%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Greatech Technology Berhad

Following the latest results, Greatech Technology Berhad's ten analysts are now forecasting revenues of RM834.6m in 2024. This would be a notable 13% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 14% to RM0.15. In the lead-up to this report, the analysts had been modelling revenues of RM843.3m and earnings per share (EPS) of RM0.16 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at RM5.89, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Greatech Technology Berhad at RM6.53 per share, while the most bearish prices it at RM4.80. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Greatech Technology Berhad is an easy business to forecast or the the analysts are all using similar assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 28% growth on an annualised basis. That is in line with its 25% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 14% annually. So it's pretty clear that Greatech Technology Berhad is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Greatech Technology Berhad. 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 RM5.89, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Greatech Technology Berhad going out to 2026, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for Greatech Technology Berhad 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.