Analysts Just Slashed Their Bear Electric Appliance Co.,Ltd. (SZSE:002959) EPS Numbers

The latest analyst coverage could presage a bad day for Bear Electric Appliance Co.,Ltd. (SZSE:002959), 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 this downgrade, Bear Electric ApplianceLtd's eight analysts are forecasting 2024 revenues to be CN¥4.6b, approximately in line with the last 12 months. Statutory earnings per share are expected to be CN¥2.37, roughly flat on the last 12 months. Prior to this update, the analysts had been forecasting revenues of CN¥5.2b and earnings per share (EPS) of CN¥3.14 in 2024. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a large cut to earnings per share numbers as well.

Check out our latest analysis for Bear Electric ApplianceLtd

The consensus price target fell 11% to CN¥59.50, with the weaker earnings outlook clearly leading analyst valuation estimates.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Bear Electric ApplianceLtd's revenue growth is expected to slow, with the forecast 3.1% annualised growth rate until the end of 2024 being well below the historical 11% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 8.3% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Bear Electric ApplianceLtd.

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 Bear Electric ApplianceLtd. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Bear Electric ApplianceLtd.

As you can see, the analysts clearly aren't bullish, and there might be good reason for that. We've identified some potential issues with Bear Electric ApplianceLtd's financials, such as concerns around earnings quality. Learn more, and discover the 1 other flag we've identified, for free on our platform here.

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.