Some AVIC (Chengdu)UAS Co., Ltd. (SHSE:688297) Analysts Just Made A Major Cut To Next Year's Estimates

Market forces rained on the parade of AVIC (Chengdu)UAS Co., Ltd. (SHSE:688297) shareholders today, when the analysts downgraded their forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.

Following the downgrade, the current consensus from AVIC (Chengdu)UAS' two analysts is for revenues of CN¥3.5b in 2024 which - if met - would reflect a substantial 31% increase on its sales over the past 12 months. Statutory earnings per share are presumed to jump 28% to CN¥0.57. Previously, the analysts had been modelling revenues of CN¥5.0b and earnings per share (EPS) of CN¥1.05 in 2024. It looks like analyst sentiment has declined substantially, with a pretty serious reduction to revenue estimates and a pretty serious decline to earnings per share numbers as well.

View our latest analysis for AVIC (Chengdu)UAS

It'll come as no surprise then, to learn that the analysts have cut their price target 32% to CN¥36.03.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of AVIC (Chengdu)UAS'historical trends, as the 31% annualised revenue growth to the end of 2024 is roughly in line with the 27% annual revenue growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 25% per year. It's clear that while AVIC (Chengdu)UAS' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

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. Lamentably, they also downgraded their sales forecasts, but the business is still expected to grow at roughly the same rate as the market itself. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of AVIC (Chengdu)UAS.

Not only have the analysts been downgrading the stock, but it looks like AVIC (Chengdu)UAS might find it hard to maintain its dividends, if these forecasts prove accurate. What makes us say that? Learn more by visiting our risks dashboard 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 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.