AVIC (Chengdu)UAS Co., Ltd. (SHSE:688297) Analysts Are More Bearish Than They Used To Be

Today is shaping up negative for AVIC (Chengdu)UAS Co., Ltd. (SHSE:688297) 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 most recent consensus for AVIC (Chengdu)UAS from its three analysts is for revenues of CN¥3.0b in 2024 which, if met, would be a sizeable 71% increase on its sales over the past 12 months. Statutory earnings per share are presumed to leap 463% to CN¥0.42. Before this latest update, the analysts had been forecasting revenues of CN¥3.3b and earnings per share (EPS) of CN¥0.56 in 2024. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a large cut to earnings per share numbers as well.

See our latest analysis for AVIC (Chengdu)UAS

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. One thing stands out from these estimates, which is that AVIC (Chengdu)UAS is forecast to grow faster in the future than it has in the past, with revenues expected to display 71% annualised growth until the end of 2024. If achieved, this would be a much better result than the 24% annual decline over the past year. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 21% per year. Not only are AVIC (Chengdu)UAS' revenues expected to improve, it seems that the analysts are also expecting it to grow faster 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 AVIC (Chengdu)UAS. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. After a cut like that, investors could be forgiven for thinking analysts are a lot more bearish on AVIC (Chengdu)UAS, and a few readers might choose to steer clear of the stock.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple AVIC (Chengdu)UAS analysts - going out to 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 backed by insiders.

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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.