Analysts Just Shaved Their Guangzhou Haoyang Electronic Co.,Ltd. (SZSE:300833) Forecasts Dramatically

The latest analyst coverage could presage a bad day for Guangzhou Haoyang Electronic Co.,Ltd. (SZSE:300833), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.

Following the downgrade, the most recent consensus for Guangzhou Haoyang ElectronicLtd from its four analysts is for revenues of CN¥1.6b in 2024 which, if met, would be a substantial 26% increase on its sales over the past 12 months. Per-share earnings are expected to bounce 27% to CN¥5.52. Before this latest update, the analysts had been forecasting revenues of CN¥1.9b and earnings per share (EPS) of CN¥6.76 in 2024. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a real cut to earnings per share numbers as well.

View our latest analysis for Guangzhou Haoyang ElectronicLtd

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Guangzhou Haoyang ElectronicLtd's rate of growth is expected to accelerate meaningfully, with the forecast 26% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 19% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 18% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Guangzhou Haoyang ElectronicLtd is expected to grow much faster than its 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 Guangzhou Haoyang ElectronicLtd. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. Given the serious cut to this year's outlook, it's clear that analysts have turned more bearish on Guangzhou Haoyang ElectronicLtd, and we wouldn't blame shareholders for feeling a little more cautious themselves.

There might be good reason for analyst bearishness towards Guangzhou Haoyang ElectronicLtd, 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.