Analysts Are More Bearish On Beijing Easpring Material Technology CO.,LTD. (SZSE:300073) Than They Used To Be

The latest analyst coverage could presage a bad day for Beijing Easpring Material Technology CO.,LTD. (SZSE:300073), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the downgrade, the consensus from 14 analysts covering Beijing Easpring Material TechnologyLTD is for revenues of CN¥11b in 2024, implying a definite 10% decline in sales compared to the last 12 months. Statutory earnings per share are supposed to nosedive 48% to CN¥1.64 in the same period. Prior to this update, the analysts had been forecasting revenues of CN¥16b and earnings per share (EPS) of CN¥1.99 in 2024. Indeed, we can see that the analysts are a lot more bearish about Beijing Easpring Material TechnologyLTD's prospects, administering a sizeable cut to revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for Beijing Easpring Material TechnologyLTD

Despite the cuts to forecast earnings, there was no real change to the CN¥45.88 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Beijing Easpring Material TechnologyLTD's past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 14% by the end of 2024. This indicates a significant reduction from annual growth of 43% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 18% annually for the foreseeable future. It's pretty clear that Beijing Easpring Material TechnologyLTD's revenues are expected to perform substantially worse 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. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Beijing Easpring Material TechnologyLTD's revenues are expected to grow slower than the wider market. We're also surprised to see that the price target went unchanged. Still, deteriorating business conditions (assuming accurate forecasts!) can be a leading indicator for the stock price, so we wouldn't blame investors for being more cautious on Beijing Easpring Material TechnologyLTD after the downgrade.

So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with Beijing Easpring Material TechnologyLTD, including concerns around earnings quality. Learn more, and discover the 2 other warning signs 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.