Upgrade: Analysts Just Made A Huge Increase To Their Eco World International Berhad (KLSE:EWINT) Forecasts
Shareholders in Eco World International Berhad (KLSE:EWINT) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects. Investors have been pretty optimistic on Eco World International Berhad too, with the stock up 16% to RM0.48 over the past week. It will be interesting to see if today's upgrade is enough to propel the stock even higher.
After the upgrade, the consensus from Eco World International Berhad's two analysts is for revenues of RM72m in 2023, which would reflect a painful 46% decline in sales compared to the last year of performance. The loss per share is anticipated to greatly reduce in the near future, narrowing 90% to RM0.01. However, before this estimates update, the consensus had been expecting revenues of RM54m and RM0.013 per share in losses. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.
View our latest analysis for Eco World International Berhad
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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 46% by the end of 2023. This indicates a significant reduction from annual growth of 37% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.8% annually for the foreseeable future. It's pretty clear that Eco World International Berhad's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing here is that analysts reduced their loss per share estimates for this year, reflecting increased optimism around Eco World International Berhad's prospects. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. With a serious upgrade to expectations, it might be time to take another look at Eco World International Berhad.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Eco World International Berhad going out as far as 2025, and you can see them free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
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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.
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