Analysts Just Shaved Their Marssenger Kitchenware Co., Ltd. (SZSE:300894) Forecasts Dramatically

The analysts covering Marssenger Kitchenware Co., Ltd. (SZSE:300894) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

After the downgrade, the ten analysts covering Marssenger Kitchenware are now predicting revenues of CN¥2.2b in 2024. If met, this would reflect an okay 6.0% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to leap 37% to CN¥0.79. Previously, the analysts had been modelling revenues of CN¥2.6b and earnings per share (EPS) of CN¥0.96 in 2024. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a real cut to earnings per share numbers as well.

Check out our latest analysis for Marssenger Kitchenware

Analysts made no major changes to their price target of CN¥17.65, suggesting the downgrades are not expected to have a long-term impact on Marssenger Kitchenware's valuation.

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. The analysts are definitely expecting Marssenger Kitchenware's growth to accelerate, with the forecast 6.0% annualised growth to the end of 2024 ranking favourably alongside historical growth of 1.2% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 9.6% annually. So it's clear that despite the acceleration in growth, Marssenger Kitchenware is expected to grow meaningfully slower than the industry average.

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 Marssenger Kitchenware. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. The lack of change in the price target is puzzling in light of the downgrade but, with a serious decline expected this year, we wouldn't be surprised if investors were a bit wary of Marssenger Kitchenware.

There might be good reason for analyst bearishness towards Marssenger Kitchenware, like the risk of cutting its dividend. Learn more, and discover the 1 other concern we've identified, for 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.