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The analysts covering Aztech Global Ltd. (SGX:8AZ) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business. The stock price has risen 5.5% to S$0.77 over the past week. It will be interesting to see if this downgrade motivates investors to start selling their holdings.
After the downgrade, the consensus from Aztech Global's four analysts is for revenues of S$548m in 2025, which would reflect a substantial 28% decline in sales compared to the last year of performance. Statutory earnings per share are anticipated to tumble 33% to S$0.075 in the same period. Previously, the analysts had been modelling revenues of S$683m and earnings per share (EPS) of S$0.087 in 2025. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a real cut to earnings per share numbers as well.
View our latest analysis for Aztech Global
The consensus price target fell 15% to S$0.67, with the weaker earnings outlook clearly leading analyst valuation estimates.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that sales are expected to reverse, with a forecast 28% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 16% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 14% per year. It's pretty clear that Aztech Global's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Aztech Global's revenues are expected to grow 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.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Aztech Global analysts - going out to 2027, and you can see them free on our platform here.