Downgrade: Here's How Analysts See Aztech Global Ltd. (SGX:8AZ) Performing In The Near Term

Today is shaping up negative for Aztech Global Ltd. (SGX:8AZ) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. 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$265m in 2025, which would reflect a painful 51% decline in sales compared to the last year of performance. Statutory earnings per share are anticipated to plunge 57% to S$0.032 in the same period. Previously, the analysts had been modelling revenues of S$319m and earnings per share (EPS) of S$0.038 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.

View our latest analysis for Aztech Global

It'll come as no surprise then, to learn that the analysts have cut their price target 7.6% to S$0.42.

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. One more thing stood out to us about these estimates, and it's the idea that Aztech Global's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 51% to the end of 2025. This tops off a historical decline of 3.5% a year over the past three years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 14% annually. 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. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. 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.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.