China Aerospace Times Electronics CO., LTD. (SHSE:600879) Analysts Just Slashed This Year's Estimates

One thing we could say about the analysts on China Aerospace Times Electronics CO., LTD. (SHSE:600879) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.

Following the downgrade, the latest consensus from China Aerospace Times Electronics' four analysts is for revenues of CN¥15b in 2025, which would reflect a modest 2.5% improvement in sales compared to the last 12 months. Per-share earnings are expected to rise 8.4% to CN¥0.18. Before this latest update, the analysts had been forecasting revenues of CN¥19b and earnings per share (EPS) of CN¥0.26 in 2025. Indeed, we can see that the analysts are a lot more bearish about China Aerospace Times Electronics' prospects, administering a pretty serious reduction to revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for China Aerospace Times Electronics

The consensus price target fell 6.9% to CN¥10.43, with the weaker earnings outlook clearly leading analyst valuation estimates.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that China Aerospace Times Electronics' revenue growth is expected to slow, with the forecast 2.5% annualised growth rate until the end of 2025 being well below the historical 5.0% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 26% annually. Factoring in the forecast slowdown in growth, it seems obvious that China Aerospace Times Electronics is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of China Aerospace Times Electronics.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for China Aerospace Times Electronics going out to 2027, and you can see them free on our platform here.

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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.