Need To Know: Analysts Just Made A Substantial Cut To Their Zhejiang HangKe Technology Incorporated Company (SHSE:688006) Estimates

Today is shaping up negative for Zhejiang HangKe Technology Incorporated Company (SHSE:688006) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.

Following the downgrade, the latest consensus from Zhejiang HangKe Technology's seven analysts is for revenues of CN¥3.8b in 2024, which would reflect an okay 2.3% improvement in sales compared to the last 12 months. Per-share earnings are expected to climb 11% to CN¥1.10. Prior to this update, the analysts had been forecasting revenues of CN¥4.8b and earnings per share (EPS) of CN¥1.66 in 2024. It looks like analyst sentiment has declined substantially, with a pretty serious reduction to revenue estimates and a large cut to earnings per share numbers as well.

View our latest analysis for Zhejiang HangKe Technology

It'll come as no surprise then, to learn that the analysts have cut their price target 11% to CN¥22.95.

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. We would highlight that Zhejiang HangKe Technology's revenue growth is expected to slow, with the forecast 4.6% annualised growth rate until the end of 2024 being well below the historical 27% 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 17% annually. Factoring in the forecast slowdown in growth, it seems obvious that Zhejiang HangKe Technology 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. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Zhejiang HangKe Technology.

So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with Zhejiang HangKe Technology, including concerns around earnings quality. Learn more, and discover the 1 other concern we've identified, for 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.