What Does The Future Hold For Wuxi Lead Intelligent Equipment CO.,LTD. (SZSE:300450)? These Analysts Have Been Cutting Their Estimates

Market forces rained on the parade of Wuxi Lead Intelligent Equipment CO.,LTD. (SZSE:300450) shareholders today, when the analysts downgraded their forecasts for this year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

After this downgrade, Wuxi Lead Intelligent EquipmentLTD's 14 analysts are now forecasting revenues of CN¥19b in 2024. This would be a solid 11% improvement in sales compared to the last 12 months. Per-share earnings are expected to shoot up 29% to CN¥2.47. Before this latest update, the analysts had been forecasting revenues of CN¥23b and earnings per share (EPS) of CN¥2.60 in 2024. It looks like analyst sentiment has fallen somewhat in this update, with a measurable cut to revenue estimates and a small dip in earnings per share numbers as well.

View our latest analysis for Wuxi Lead Intelligent EquipmentLTD

Despite the cuts to forecast earnings, there was no real change to the CN¥33.45 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.

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 Wuxi Lead Intelligent EquipmentLTD's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 15% growth on an annualised basis. This is compared to a historical growth rate of 33% over the past five years. Compare this to the 479 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 17% per year. So it's pretty clear that, while Wuxi Lead Intelligent EquipmentLTD's revenue growth is expected to slow, it's expected to grow roughly in line with the 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. Lamentably, they also downgraded their sales forecasts, but the business is still expected to grow at roughly the same rate as the market itself. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Wuxi Lead Intelligent EquipmentLTD going forwards.

There might be good reason for analyst bearishness towards Wuxi Lead Intelligent EquipmentLTD, like concerns around earnings quality. For more information, you can click here to discover this and the 1 other risk we've identified.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks 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.