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) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the downgrade, the consensus from four analysts covering Aztech Global is for revenues of S$381m in 2025, implying a stressful 29% decline in sales compared to the last 12 months. Statutory earnings per share are anticipated to plunge 37% to S$0.046 in the same period. Prior to this update, the analysts had been forecasting revenues of S$548m and earnings per share (EPS) of S$0.074 in 2025. Indeed, we can see that the analysts are a lot more bearish about Aztech Global's prospects, administering a sizeable cut to revenue estimates and slashing their EPS estimates to boot.

The consensus price target fell 24% to S$0.51, with the weaker earnings outlook clearly leading analyst valuation estimates.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One more thing stood out to us about these estimates, and it's the idea that Aztech Global's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 29% to the end of 2025. This tops off a historical decline of 3.5% a year over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 13% per year. So while a broad number of companies are forecast to grow, unfortunately Aztech Global 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 Aztech Global. 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. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Aztech Global.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Aztech Global going out to 2027, 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 downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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.