Greatech Technology Berhad Just Beat Revenue Estimates By 24%
As you might know, Greatech Technology Berhad (KLSE:GREATEC) just kicked off its latest third-quarter results with some very strong numbers. Revenue and earnings both exceeded expectations, with revenues of RM157m beating expectations by 24% and statutory earnings per share (EPS) of RM0.033 exceeding forecasts by 13%. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for Greatech Technology Berhad
After the latest results, the eight analysts covering Greatech Technology Berhad are now predicting revenues of RM686.5m in 2023. If met, this would reflect a major 52% improvement in sales compared to the last 12 months. Per-share earnings are expected to soar 55% to RM0.15. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM678.2m and earnings per share (EPS) of RM0.15 in 2023. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The analysts reconfirmed their price target of RM4.30, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Greatech Technology Berhad analyst has a price target of RM5.20 per share, while the most pessimistic values it at RM3.50. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Greatech Technology Berhad shareholders.
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. The analysts are definitely expecting Greatech Technology Berhad's growth to accelerate, with the forecast 40% annualised growth to the end of 2023 ranking favourably alongside historical growth of 25% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 14% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Greatech Technology Berhad is expected to grow much faster than its industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. The consensus price target held steady at RM4.30, 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 2024, and you can see them free on our platform here.
You still need to take note of risks, for example - Greatech Technology Berhad has 1 warning sign we think you should be aware of.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
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