Bearish: Analysts Just Cut Their Aztech Global Ltd. (SGX:8AZ) Revenue and EPS estimates

The latest analyst coverage could presage a bad day for Aztech Global Ltd. (SGX:8AZ), 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 the analysts have soured majorly on the business.

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After the downgrade, the consensus from Aztech Global's four analysts is for revenues of S$319m in 2025, which would reflect a disturbing 40% decline in sales compared to the last year of performance. Statutory earnings per share are supposed to plunge 48% to S$0.037 in the same period. Before this latest update, the analysts had been forecasting revenues of S$381m and earnings per share (EPS) of S$0.046 in 2025. Indeed, we can see that the analysts are a lot more bearish about Aztech Global's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for Aztech Global

The consensus price target fell 8.9% to S$0.46, with the weaker earnings outlook clearly leading analyst valuation estimates.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. Over the past three years, revenues have declined around 3.5% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 40% decline in revenue until the end of 2025. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 13% per year. So while a broad number of companies are forecast to grow, unfortunately Aztech Global is expected to see its sales affected worse than other companies in the 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 Aztech Global. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Aztech Global's revenues are expected to grow slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Aztech Global.

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 Aztech Global going out to 2027, 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.