Analysts Just Shaved Their Zhejiang Entive Smart Kitchen Appliance Co., Ltd. (SZSE:300911) Forecasts Dramatically

Today is shaping up negative for Zhejiang Entive Smart Kitchen Appliance Co., Ltd. (SZSE:300911) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.

Following the downgrade, the most recent consensus for Zhejiang Entive Smart Kitchen Appliance from its nine analysts is for revenues of CN¥1.3b in 2024 which, if met, would be a satisfactory 3.5% increase on its sales over the past 12 months. Statutory earnings per share are presumed to grow 12% to CN¥1.87. Prior to this update, the analysts had been forecasting revenues of CN¥1.5b and earnings per share (EPS) of CN¥2.44 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 Zhejiang Entive Smart Kitchen Appliance

The consensus price target fell 6.4% to CN¥36.36, 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. It's pretty clear that there is an expectation that Zhejiang Entive Smart Kitchen Appliance's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 3.5% growth on an annualised basis. This is compared to a historical growth rate of 19% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.6% per year. Factoring in the forecast slowdown in growth, it seems obvious that Zhejiang Entive Smart Kitchen Appliance is also expected to grow slower than other industry participants.

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 Zhejiang Entive Smart Kitchen Appliance. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Zhejiang Entive Smart Kitchen Appliance's revenues are expected to grow 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 Zhejiang Entive Smart Kitchen Appliance.

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 Zhejiang Entive Smart Kitchen Appliance's financials, such as concerns around earnings quality. For more information, you can click here to discover this and the 1 other risk we've identified.

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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.