Beijing Easpring Material Technology CO.,LTD. (SZSE:300073) Analysts Are Reducing Their Forecasts For This Year

Today is shaping up negative for Beijing Easpring Material Technology CO.,LTD. (SZSE:300073) 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 the analysts seeing grey clouds on the horizon. Surprisingly the share price has been buoyant, rising 20% to CN¥43.15 in the past 7 days. Whether the downgrade will have a negative impact on demand for shares is yet to be seen.

Following the downgrade, the latest consensus from Beijing Easpring Material TechnologyLTD's 14 analysts is for revenues of CN¥18b in 2024, which would reflect a notable 17% improvement in sales compared to the last 12 months. Statutory earnings per share are anticipated to tumble 39% to CN¥2.32 in the same period. Prior to this update, the analysts had been forecasting revenues of CN¥20b and earnings per share (EPS) of CN¥4.46 in 2024. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a large cut to earnings per share numbers as well.

Check out our latest analysis for Beijing Easpring Material TechnologyLTD

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Beijing Easpring Material TechnologyLTD's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 17% growth on an annualised basis. This is compared to a historical growth rate of 47% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 18% annually. So it's pretty clear that, while Beijing Easpring Material TechnologyLTD's revenue growth is expected to slow, it's expected to grow roughly in line with the 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 Beijing Easpring Material TechnologyLTD. 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. 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 Beijing Easpring Material TechnologyLTD, and their negativity could be grounds for caution.

After a downgrade like this, it's pretty clear that previous forecasts were too optimistic. What's more, we've spotted several possible issues with Beijing Easpring Material TechnologyLTD's business, like concerns around earnings quality. Learn more, and discover the 1 other warning sign we've identified, for free on our platform here.

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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.