Celebrations may be in order for AWC Berhad (KLSE:AWC) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.
Following the upgrade, the most recent consensus for AWC Berhad from its one analyst is for revenues of RM407m in 2023 which, if met, would be a modest 4.6% increase on its sales over the past 12 months. Prior to the latest estimates, the analyst was forecasting revenues of RM365m in 2023. The consensus has definitely become more optimistic, showing a solid increase in revenue forecasts.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2023 brings more of the same, according to the analyst, with revenue forecast to display 4.6% growth on an annualised basis. That is in line with its 3.9% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 13% per year. So although AWC Berhad is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.
The Bottom Line
The most important thing to take away from this upgrade is that the analyst lifted their revenue estimates for this year. They also expect company revenue to perform worse than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at AWC Berhad.
These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 4 potential flags with AWC Berhad, including its declining profit margins. For more information, you can click through to our platform to learn more about this and the 3 other flags we've identified .
Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies 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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