Suwen Electric Energy Technology Co.,Ltd. (SZSE:300982) Analysts Just Slashed This Year's Estimates

Today is shaping up negative for Suwen Electric Energy Technology Co.,Ltd. (SZSE:300982) 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 analysts seeing grey clouds on the horizon. At CN¥18.08, shares are up 4.4% in the past 7 days. It will be interesting to see if this downgrade motivates investors to start selling their holdings.

Following the downgrade, the latest consensus from Suwen Electric Energy TechnologyLtd's seven analysts is for revenues of CN¥3.3b in 2024, which would reflect a substantial 26% improvement in sales compared to the last 12 months. Per-share earnings are expected to jump 547% to CN¥1.06. Prior to this update, the analysts had been forecasting revenues of CN¥3.9b and earnings per share (EPS) of CN¥1.98 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.

See our latest analysis for Suwen Electric Energy TechnologyLtd

It'll come as no surprise then, to learn that the analysts have cut their price target 12% to CN¥27.94.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Suwen Electric Energy TechnologyLtd's growth to accelerate, with the forecast 36% annualised growth to the end of 2024 ranking favourably alongside historical growth of 21% per annum over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 10% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Suwen Electric Energy TechnologyLtd to grow faster 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. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Suwen Electric Energy TechnologyLtd.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Suwen Electric Energy TechnologyLtd going out to 2026, and you can see them 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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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.