Aecc Aero-Engine Control Co.,Ltd. (SZSE:000738) Analysts Just Cut Their EPS Forecasts Substantially

Today is shaping up negative for Aecc Aero-Engine Control Co.,Ltd. (SZSE:000738) 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 analysts seeing grey clouds on the horizon.

Following the downgrade, the current consensus from Aecc Aero-Engine ControlLtd's five analysts is for revenues of CN¥6.0b in 2024 which - if met - would reflect a meaningful 12% increase on its sales over the past 12 months. Per-share earnings are expected to step up 19% to CN¥0.66. Before this latest update, the analysts had been forecasting revenues of CN¥6.7b and earnings per share (EPS) of CN¥0.77 in 2024. Indeed, we can see that the analysts are a lot more bearish about Aecc Aero-Engine ControlLtd's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for Aecc Aero-Engine ControlLtd

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 12% growth on an annualised basis. That is in line with its 14% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 22% annually. So although Aecc Aero-Engine ControlLtd is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

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. We wouldn't be surprised to find shareholders feeling a bit shell-shocked, after these downgrades. It looks like analysts have become a lot more bearish on Aecc Aero-Engine ControlLtd, and their negativity could be grounds for caution.

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 Aecc Aero-Engine ControlLtd 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.