Things Look Grim For QES Group Berhad (KLSE:QES) After Today's Downgrade

The latest analyst coverage could presage a bad day for QES Group Berhad (KLSE:QES), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.

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Following the latest downgrade, QES Group Berhad's twin analysts currently expect revenues in 2025 to be RM256m, approximately in line with the last 12 months. Statutory earnings per share are supposed to shrink 9.9% to RM0.017 in the same period. Before this latest update, the analysts had been forecasting revenues of RM304m and earnings per share (EPS) of RM0.029 in 2025. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a large cut to earnings per share numbers as well.

See our latest analysis for QES Group Berhad

It'll come as no surprise then, to learn that the analysts have cut their price target 11% to RM0.47.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the QES Group Berhad's past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 1.2% by the end of 2025. This indicates a significant reduction from annual growth of 10% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 12% per year. It's pretty clear that QES Group Berhad's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that QES Group Berhad's revenues are expected to grow 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.

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 QES Group Berhad going out as far as 2026, and you can see them free on our platform here.

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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.