ViTrox Corporation Berhad (KLSE:VITROX) Analysts Just Trimmed Their Revenue Forecasts By 10%

Today is shaping up negative for ViTrox Corporation Berhad (KLSE:VITROX) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

Following the downgrade, the current consensus from ViTrox Corporation Berhad's eleven analysts is for revenues of RM600m in 2024 which - if met - would reflect a notable 10% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing RM667m of revenue in 2024. It looks like forecasts have become a fair bit less optimistic on ViTrox Corporation Berhad, given the substantial drop in revenue estimates.

See our latest analysis for ViTrox Corporation Berhad

There was no particular change to the consensus price target of RM4.08, with ViTrox Corporation Berhad's latest outlook seemingly not enough to result in a change of valuation.

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. It's clear from the latest estimates that ViTrox Corporation Berhad's rate of growth is expected to accelerate meaningfully, with the forecast 22% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 12% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect ViTrox Corporation Berhad to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. The analysts also expect revenues to grow faster than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of ViTrox Corporation Berhad going forwards.

Looking to learn more? We have estimates for ViTrox Corporation Berhad from its eleven analysts out until 2026, and you can see them 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 with high insider ownership.

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.

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