News Flash: 7 Analysts Think Jiangsu Chuanzhiboke Education Technology Co., LTD. (SZSE:003032) Earnings Are Under Threat

The analysts covering Jiangsu Chuanzhiboke Education Technology Co., LTD. (SZSE:003032) 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 the analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the downgrade, the most recent consensus for Jiangsu Chuanzhiboke Education Technology from its seven analysts is for revenues of CN¥637m in 2024 which, if met, would be a meaningful 19% increase on its sales over the past 12 months. Per-share earnings are expected to bounce 676% to CN¥0.30. Previously, the analysts had been modelling revenues of CN¥753m and earnings per share (EPS) of CN¥0.42 in 2024. Indeed, we can see that the analysts are a lot more bearish about Jiangsu Chuanzhiboke Education Technology's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Jiangsu Chuanzhiboke Education Technology

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. One thing stands out from these estimates, which is that Jiangsu Chuanzhiboke Education Technology is forecast to grow faster in the future than it has in the past, with revenues expected to display 19% annualised growth until the end of 2024. If achieved, this would be a much better result than the 3.1% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 19% annually. So while Jiangsu Chuanzhiboke Education Technology's revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.

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 Jiangsu Chuanzhiboke Education Technology. There was also a drop in their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider market. We wouldn't be surprised to find shareholders feeling a bit shell-shocked, after these downgrades. It looks like analysts have become a lot more bearish on Jiangsu Chuanzhiboke Education Technology, and their negativity could be grounds for caution.

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 Jiangsu Chuanzhiboke Education Technology going out to 2026, and you can see them 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 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.