The Tenaga Nasional Berhad (KLSE:TENAGA) Analysts Have Been Trimming Their Sales Forecasts

Market forces rained on the parade of Tenaga Nasional Berhad (KLSE:TENAGA) shareholders today, when the analysts downgraded their forecasts for this year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the latest downgrade, the 17 analysts covering Tenaga Nasional Berhad provided consensus estimates of RM52b revenue in 2023, which would reflect a concerning 29% decline on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of RM60b in 2023. The consensus view seems to have become more pessimistic on Tenaga Nasional Berhad, noting the measurable cut to revenue estimates in this update.

Check out our latest analysis for Tenaga Nasional Berhad

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 37% by the end of 2023. This indicates a significant reduction from annual growth of 19% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 1.2% annually for the foreseeable future. It's pretty clear that Tenaga Nasional Berhad's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Tenaga Nasional Berhad this year. They also expect company revenue to perform worse than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Tenaga Nasional Berhad going forwards.

Thirsting for more data? We have estimates for Tenaga Nasional Berhad from its 17 analysts out until 2025, 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.