Tune Protect Group Berhad (KLSE:TUNEPRO) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory 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.

Following the upgrade, the consensus from two analysts covering Tune Protect Group Berhad is for revenues of RM357m in 2023, implying a perceptible 7.0% decline in sales compared to the last 12 months. Statutory earnings per share are presumed to jump 390% to RM0.021. Prior to this update, the analysts had been forecasting revenues of RM307m and earnings per share (EPS) of RM0.018 in 2023. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

View our latest analysis for Tune Protect Group Berhad

Despite these upgrades, the analysts have not made any major changes to their price target of RM0.53, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would also point out that the forecast 7.0% annualised revenue decline to the end of 2023 is roughly in line with the historical trend, which saw revenues shrink 6.2% annually over the past five years Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to decline 1.6% annually. So it's pretty clear that Tune Protect Group Berhad sales are expected to decline at a faster rate than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue estimates, with sales apparently performing well even though revenue growth expected to decline against the wider market this year. The lack of change in the price target is puzzling, but with a serious upgrade to this year's earnings expectations, it might be time to take another look at Tune Protect Group Berhad.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Tune Protect Group 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.