The Genting Singapore Limited (SGX:G13) Analysts Have Been Trimming Their Sales Forecasts

The analysts covering Genting Singapore Limited (SGX:G13) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

Following the downgrade, the latest consensus from Genting Singapore's 17 analysts is for revenues of S$1.6b in 2022, which would reflect a substantial 51% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to leap 92% to S$0.029. Previously, the analysts had been modelling revenues of S$1.8b and earnings per share (EPS) of S$0.033 in 2022. Indeed, we can see that the analysts are a lot more bearish about Genting Singapore's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for Genting Singapore

Despite the cuts to forecast earnings, there was no real change to the S$0.91 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Genting Singapore at S$1.15 per share, while the most bearish prices it at S$0.70. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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 thing stands out from these estimates, which is that Genting Singapore is forecast to grow faster in the future than it has in the past, with revenues expected to display 51% annualised growth until the end of 2022. If achieved, this would be a much better result than the 15% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 26% per year. So it looks like Genting Singapore is expected to grow faster than its competitors, at least for a while.

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. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Genting Singapore after today.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Genting Singapore going out to 2024, 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 that insiders are buying.

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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.