The analysts covering Hartalega Holdings Berhad( KLSE:HARTA ) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.
Following the downgrade, the consensus from 19 analysts covering Hartalega Holdings Berhad is for revenues of RM2.3b in 2026, implying a perceptible 5.1% decline in sales compared to the last 12 months. Per-share earnings are expected to increase 9.9% to RM0.021. Previously, the analysts had been modelling revenues of RM2.6b and earnings per share (EPS) of RM0.03 in 2026. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a pretty serious decline to earnings per share numbers as well.
See our latest analysis for Hartalega Holdings Berhad
It'll come as no surprise then, to learn that the analysts have cut their price target 16% to RM1.28.
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. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2026 compared to the historical decline of 30% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 14% per year. So while a broad number of companies are forecast to grow, unfortunately Hartalega Holdings Berhad 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 Hartalega Holdings Berhad. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Hartalega Holdings Berhad.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Hartalega Holdings Berhad analysts - going out to 2028, and you can see them free on our platform here.
Another way to search for interesting companies that could be reaching an inflection pointis 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.
