Greatech Technology Berhad (KLSE:GREATEC) Just Missed Earnings: Here's What Analysts Think Will Happen Next
Greatech Technology Berhad (KLSE:GREATEC) just released its latest second-quarter report and things are not looking great. Greatech Technology Berhad delivered a grave earnings miss, with both revenues (RM210m) and statutory earnings per share (RM0.013) falling badly short of analyst expectations. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the current consensus from Greatech Technology Berhad's eight analysts is for revenues of RM998.4m in 2026. This would reflect a major 33% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 74% to RM0.059. In the lead-up to this report, the analysts had been modelling revenues of RM1.04b and earnings per share (EPS) of RM0.073 in 2026. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.
View our latest analysis for Greatech Technology Berhad
The analysts made no major changes to their price target of RM3.23, suggesting the downgrades are not expected to have a long-term impact on Greatech Technology Berhad's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Greatech Technology Berhad, with the most bullish analyst valuing it at RM3.60 and the most bearish at RM2.50 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
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. It's clear from the latest estimates that Greatech Technology Berhad's rate of growth is expected to accelerate meaningfully, with the forecast 76% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 15% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 16% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Greatech Technology Berhad to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target held steady at RM3.23, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Greatech Technology Berhad. Long-term earnings power is much more important than next year's profits. We have forecasts for Greatech Technology Berhad going out to 2028, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Greatech Technology Berhad that you should be aware of.
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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.