Need To Know: Analysts Just Made A Substantial Cut To Their JHM Consolidation Berhad (KLSE:JHM) Estimates

Today is shaping up negative for JHM Consolidation Berhad (KLSE:JHM) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.

After this downgrade, JHM Consolidation Berhad's twin analysts are now forecasting revenues of RM203m in 2024. This would be a decent 9.2% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 62% to RM0.016 per share. Previously, the analysts had been modelling revenues of RM337m and earnings per share (EPS) of RM0.018 in 2024. So we can see that the consensus has become notably more bearish on JHM Consolidation Berhad's outlook with these numbers, making a pretty serious reduction to this year's revenue estimates. Furthermore, they expect the business to be loss-making this year, compared to their previous forecasts of a profit.

Check out our latest analysis for JHM Consolidation Berhad

The consensus price target fell 24% to RM0.49, implicitly signalling that lower earnings per share are a leading indicator for JHM Consolidation Berhad's valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the JHM Consolidation Berhad's past performance and to peers in the same industry. The analysts are definitely expecting JHM Consolidation Berhad's growth to accelerate, with the forecast 9.2% annualised growth to the end of 2024 ranking favourably alongside historical growth of 2.7% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 19% annually. So it's clear that despite the acceleration in growth, JHM Consolidation Berhad is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most important thing to take away is that analysts are expecting JHM Consolidation Berhad to become unprofitable this year. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for JHM Consolidation Berhad going out as far as 2026, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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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.