The latest analyst coverage may bode badly for Genetec Technology Berhad (KLSE:GENETEC), as the analysts have downgraded their statutory forecasts across the board, which may come as a bit of a shock to shareholders. Revenue and earnings per share (EPS) forecasts have both been cut, suggesting that the analysts are highly disappointed with the company's business.
Following the downgrade, the consensus from Genetec Technology's two analysts is for revenues of RM251 million in 2025, implying a steep decline in sales of 15% compared to the previous year's performance. Statutory earnings per share are expected to fall 29% to RM0.07 in the same period. Analysts had previously forecast revenues of RM485 million and earnings per share (EPS) of RM0.15 in 2025. Indeed, we can see that analysts have become much more pessimistic about Genetec Technology's prospects, slashing their revenue forecasts and also significantly lowering their EPS forecasts.
Check out our latest analysis for Genetec Technology Berhad
Revenue and Revenue Growth
It will not come as a surprise to hear that analysts have cut their target price by 7.4% to RM3.75.
While these estimates are interesting, it's helpful to paint a broader picture when comparing Genetec Technology Berhad's past performance and forecasts with its industry peers. Sales are expected to reverse, with annual revenue predicted to fall 12% by the end of 2025. This is a notable change from the 32% growth rate over the past five years. In contrast, our data shows that other companies in the same industry (with analyst coverage) are forecast to grow revenue at 14% per year for the foreseeable future. So, while revenue is predicted to decline, there is no silver lining to this cloud. Genetec Technology Berhad is expected to lag behind the wider industry.
Conclusion
The biggest problem with the new forecasts is that the analysts have lowered their earnings per share forecasts, suggesting headwinds for Genetec Technology Berhad's business. Unfortunately, the analysts have also lowered their revenue forecasts, and industry data shows that Genetec Technology Berhad's revenue is expected to grow more slowly than the overall market. With such a sharp cut in forecasts for next year and a lower price target, it's no surprise that investors are becoming more cautious about Genetec Technology Berhad.
Yet the long term trajectory of the business is far more important to shareholder value creation, and analyst forecasts for Genetec Technology Berhad are available out to 2026, and you can see them free of charge on our platform.
The story continues
Of course, seeing if a company's management has significant money invested in a stock can be just as useful as knowing whether analysts have been revising their estimates downwards, so you might also want to search for this free list of stocks with high insider ownership.
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This article by Simply Wall St is of general nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology, and our articles are not intended as financial advice. It is not a recommendation to buy or sell a stock, and does not take into account your objectives or financial situation. We aim to provide long-term analysis driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned herein.
