Greatech Technology Berhad( KLSE:GREATEC ) missed earnings with its latest third-quarter results, disappointing overly-optimistic forecasters. Unfortunately, Greatech Technology Berhad delivered a serious earnings miss. Revenues of RM193m were 12% below expectations, and statutory earnings per share of RM0.0075 missed estimates by 49%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Greatech Technology Berhad after the latest results.
Following the latest results, Greatech Technology Berhad's eight analysts are now forecasting revenues of RM922.6m in 2026. This would be a meaningful 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 32% to RM0.07. Before this earnings report, the analysts had been forecasting revenues of RM919.1m and earnings per share (EPS) of RM0.077 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.
View our latest analysis for Greatech Technology Berhad
The consensus price target held steady at RM2.19, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Greatech Technology Berhad at RM2.50 per share, while the most bearish prices it at RM1.80. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
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. We would highlight that Greatech Technology Berhad's revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2026 being well below the historical 21% p.a. growth over the last five years. Compare this to the 24 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 9.8% per year. Factoring in the forecast slowdown in growth, it looks like Greatech Technology Berhad is forecast to grow at about the same rate as the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Greatech Technology Berhad. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at RM2.19, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Greatech Technology Berhad going out to 2027, and you can see them free on our platform here.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here .
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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.
