Analysts Have Just Cut Their Estun Automation Co., Ltd (SZSE:002747) Revenue Estimates By 10%

Market forces rained on the parade of Estun Automation Co., Ltd (SZSE:002747) shareholders today, when the analysts downgraded their forecasts for this year. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

Following the downgrade, the current consensus from Estun Automation's 17 analysts is for revenues of CN¥5.4b in 2024 which - if met - would reflect a meaningful 16% increase on its sales over the past 12 months. Statutory earnings per share are presumed to jump 263% to CN¥0.41. Prior to this update, the analysts had been forecasting revenues of CN¥6.1b and earnings per share (EPS) of CN¥0.41 in 2024. So there's been a clear change in analyst sentiment in the recent update, with the analysts making a substantial drop in revenues and reconfirming their earnings per share estimates.

View our latest analysis for Estun Automation

The average price target was steady at CN¥19.54 even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 22% growth on an annualised basis. That is in line with its 24% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 18% per year. So although Estun Automation is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Estun Automation after today.

There might be good reason for analyst bearishness towards Estun Automation, like its declining profit margins. Learn more, and discover the 2 other concerns we've identified, for 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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