These Analysts Just Made A Sizeable Downgrade To Their Acter Technology Integration Group Co., Ltd. (SHSE:603163) EPS Forecasts

Today is shaping up negative for Acter Technology Integration Group Co., Ltd. (SHSE:603163) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the downgrade, the current consensus from Acter Technology Integration Group's twin analysts is for revenues of CN¥2.4b in 2024 which - if met - would reflect a substantial 22% increase on its sales over the past 12 months. Per-share earnings are expected to grow 15% to CN¥1.65. Prior to this update, the analysts had been forecasting revenues of CN¥2.8b and earnings per share (EPS) of CN¥2.15 in 2024. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a pretty serious decline to earnings per share numbers as well.

View our latest analysis for Acter Technology Integration Group

It'll come as no surprise then, to learn that the analysts have cut their price target 38% to CN¥34.67.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Acter Technology Integration Group's growth to accelerate, with the forecast 22% annualised growth to the end of 2024 ranking favourably alongside historical growth of 15% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 23% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Acter Technology Integration Group is expected to grow at about the same rate as the wider industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Acter Technology Integration Group. There was also a drop in their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Acter Technology Integration Group.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Acter Technology Integration Group going out as far as 2026, and you can see them free on our platform here.

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.