Bearish: Analysts Just Cut Their Axiata Group Berhad (KLSE:AXIATA) Revenue and EPS estimates

Market forces rained on the parade of Axiata Group Berhad (KLSE:AXIATA) shareholders today, when the analysts downgraded their forecasts for this year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.

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Following the downgrade, the consensus from 19 analysts covering Axiata Group Berhad is for revenues of RM18b in 2025, implying an uneasy 18% decline in sales compared to the last 12 months. Statutory earnings per share are anticipated to tumble 23% to RM0.088 in the same period. Previously, the analysts had been modelling revenues of RM24b and earnings per share (EPS) of RM0.10 in 2025. Indeed, we can see that the analysts are a lot more bearish about Axiata Group Berhad's prospects, administering a pretty serious reduction to revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Axiata Group Berhad

Despite the cuts to forecast earnings, there was no real change to the RM2.67 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.

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. One more thing stood out to us about these estimates, and it's the idea that Axiata Group Berhad's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 24% to the end of 2025. This tops off a historical decline of 2.2% a year 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 revenue grow 5.4% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect Axiata Group Berhad to suffer worse than the wider industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Axiata Group Berhad. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Axiata Group Berhad's revenues are expected to grow slower than the wider market. The lack of change in the price target is puzzling in light of the downgrade but, with a serious decline expected this year, we wouldn't be surprised if investors were a bit wary of Axiata Group Berhad.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for Axiata Group Berhad going out to 2027, 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.