Analysts Are More Bearish On XTC New Energy Materials(Xiamen) Co.,Ltd. (SHSE:688778) Than They Used To Be

The analysts covering XTC New Energy Materials(Xiamen) Co.,Ltd. (SHSE:688778) 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.

Following the downgrade, the most recent consensus for XTC New Energy Materials(Xiamen)Ltd from its four analysts is for revenues of CN¥20b in 2024 which, if met, would be a notable 18% increase on its sales over the past 12 months. Statutory earnings per share are presumed to surge 66% to CN¥2.06. Prior to this update, the analysts had been forecasting revenues of CN¥22b and earnings per share (EPS) of CN¥2.41 in 2024. Indeed, we can see that the analysts are a lot more bearish about XTC New Energy Materials(Xiamen)Ltd's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for XTC New Energy Materials(Xiamen)Ltd

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. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 18% growth on an annualised basis. That is in line with its 16% annual growth over the past three years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 18% per year. So although XTC New Energy Materials(Xiamen)Ltd is expected to maintain its revenue growth rate, it's only growing at about the rate of 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 XTC New Energy Materials(Xiamen)Ltd. 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 a cut like that, investors could be forgiven for thinking analysts are a lot more bearish on XTC New Energy Materials(Xiamen)Ltd, and a few readers might choose to steer clear of the stock.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple XTC New Energy Materials(Xiamen)Ltd 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 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.