Uchi Technologies Berhad (KLSE:UCHITEC) defied analyst predictions to release its full-year results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 2.5% to hit RM214m. Uchi Technologies Berhad reported statutory earnings per share (EPS) RM0.27, which was a notable 13% above what the analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Uchi Technologies Berhad

Following last week's earnings report, Uchi Technologies Berhad's four analysts are forecasting 2023 revenues to be RM212.9m, approximately in line with the last 12 months. Statutory earnings per share are forecast to dive 22% to RM0.21 in the same period. Before this earnings report, the analysts had been forecasting revenues of RM204.0m and earnings per share (EPS) of RM0.23 in 2023. Overall it looks as though the analysts were a bit mixed on the latest results. Although there was a to revenue, the consensus also made a small dip in its earnings per share forecasts.

There's been no major changes to the price target of RM3.30, suggesting that the impact of higher forecast sales and lower earnings won't result in a meaningful change to the business' 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. Currently, the most bullish analyst values Uchi Technologies Berhad at RM3.38 per share, while the most bearish prices it at RM3.14. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Uchi Technologies Berhad is an easy business to forecast or the the analysts are all using similar assumptions.

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 highlight that sales are expected to reverse, with a forecast 0.7% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 8.3% 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 11% annually for the foreseeable future. It's pretty clear that Uchi Technologies Berhad's revenues are expected to perform substantially worse 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. They also upgraded their revenue estimates for next year, even though sales are expected to grow slower than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Uchi Technologies Berhad going out to 2025, and you can see them free on our platform here..

Before you take the next step you should know about the 2 warning signs for Uchi Technologies Berhad that we have uncovered.

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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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