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

It's shaping up to be a tough period for Greatech Technology Berhad (KLSE:GREATEC), which a week ago released some disappointing third-quarter results that could have a notable impact on how the market views the stock. It looks like quite a negative result overall, with both revenues and earnings falling well short of analyst predictions. Revenues of RM189m missed by 14%, and statutory earnings per share of RM0.0091 fell short of forecasts by 55%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Greatech Technology Berhad

Taking into account the latest results, the current consensus from Greatech Technology Berhad's ten analysts is for revenues of RM894.7m in 2025. This would reflect a sizeable 28% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 42% to RM0.082. In the lead-up to this report, the analysts had been modelling revenues of RM943.9m and earnings per share (EPS) of RM0.09 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

It'll come as no surprise then, to learn that the analysts have cut their price target 8.3% to RM2.61. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Greatech Technology Berhad, with the most bullish analyst valuing it at RM3.27 and the most bearish at RM2.20 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Greatech Technology Berhad shareholders.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Greatech Technology Berhad'shistorical trends, as the 22% annualised revenue growth to the end of 2025 is roughly in line with the 27% annual growth 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 revenues grow 13% per year. So although Greatech Technology Berhad is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Greatech Technology Berhad's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Greatech Technology Berhad. Long-term earnings power is much more important than next year's profits. 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..

It is also worth noting that we have found 1 warning sign for Greatech Technology Berhad that you need to take into consideration.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.