Analysts Just Slashed Their Ningbo Ronbay New Energy Technology Co.,Ltd. (SHSE:688005) EPS Numbers

The analysts covering Ningbo Ronbay New Energy Technology Co.,Ltd. (SHSE:688005) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.

After the downgrade, the consensus from Ningbo Ronbay New Energy TechnologyLtd's nine analysts is for revenues of CN¥16b in 2024, which would reflect a discernible 2.4% decline in sales compared to the last year of performance. Per-share earnings are expected to shoot up 105% to CN¥0.90. Prior to this update, the analysts had been forecasting revenues of CN¥22b and earnings per share (EPS) of CN¥1.49 in 2024. It looks like analyst sentiment has declined substantially, with a sizeable cut to revenue estimates and a pretty serious decline to earnings per share numbers as well.

See our latest analysis for Ningbo Ronbay New Energy TechnologyLtd

The consensus price target fell 8.1% to CN¥39.67, with the weaker earnings outlook clearly leading analyst valuation estimates.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Ningbo Ronbay New Energy TechnologyLtd's past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with a forecast 3.2% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 41% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 16% per year. It's pretty clear that Ningbo Ronbay New Energy TechnologyLtd's revenues are expected to perform substantially worse than 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 Ningbo Ronbay New Energy TechnologyLtd. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Ningbo Ronbay New Energy TechnologyLtd.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Ningbo Ronbay New Energy TechnologyLtd analysts - going out to 2026, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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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