In 2023, Globetronics Technology Bhd (KLSE:GTRONIC) reported its full-year financial results, showing a decrease in revenue to RM131.8m, down 27% from the previous year. Net income also decreased by 42% to RM26.4m, with a profit margin of 20%, down from 25% in 2022. Despite the decline in revenue, Globetronics Technology Bhd’s EPS exceeded analyst expectations by 1.3%. However, revenue fell short of analyst estimates by 14%.
Looking ahead, the company is forecasting a 12% annual growth in revenue over the next three years, compared to a 14% growth forecast for the Semiconductor industry in Malaysia. Despite this positive outlook, Globetronics Technology Bhd’s shares have been on a downturn lately, falling 7.1% from a week ago.
It is important to note that there is a warning sign for Globetronics Technology Bhd that investors should be aware of before making any investment decisions. The Malaysian Semiconductor industry has not been as strong as expected, and this has impacted the company’s performance negatively. Therefore, investors should exercise caution when investing in this stock and do their own research before making any investment decisions.
In conclusion, while Globetronics Technology Bhd’s EPS exceeded analyst expectations by 1.3%, revenue fell short of estimates by 14%. Looking forward, the company is forecasting a slower growth rate than anticipated due to challenges faced by the Semiconductor industry in Malaysia. Investors should take caution and carefully consider their investment options before making any decisions based on these results alone.