News Flash: 3 Analysts Think Xiamen Intretech Inc. (SZSE:002925) Earnings Are Under Threat

One thing we could say about the analysts on Xiamen Intretech Inc. (SZSE:002925) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.

Following the downgrade, the most recent consensus for Xiamen Intretech from its three analysts is for revenues of CN¥4.2b in 2024 which, if met, would be a notable 17% increase on its sales over the past 12 months. Statutory earnings per share are presumed to climb 20% to CN¥0.61. Prior to this update, the analysts had been forecasting revenues of CN¥4.9b and earnings per share (EPS) of CN¥0.78 in 2024. Indeed, we can see that the analysts are a lot more bearish about Xiamen Intretech's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Xiamen Intretech

The consensus price target fell 8.4% to CN¥15.85, with the weaker earnings outlook clearly leading analyst valuation estimates.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. For example, we noticed that Xiamen Intretech's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 17% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 0.8% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 8.4% per year. Not only are Xiamen Intretech's revenues expected to improve, it seems that the analysts are also expecting it 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 Xiamen Intretech.

Worse yet, our risk analysis suggests that Xiamen Intretech may find it hard to maintain its dividend following these downgrades. For more information, you can click here to learn more about our dividend analysis and the 1 potential concern 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 with high insider ownership.

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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.