Analysts Just Slashed Their Guangzhou Jet Bio-Filtration Co., Ltd. (SHSE:688026) EPS Numbers

The latest analyst coverage could presage a bad day for Guangzhou Jet Bio-Filtration Co., Ltd. (SHSE:688026), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business. The stock price has risen 8.5% to CN¥10.87 over the past week. Investors could be forgiven for changing their mind on the business following the downgrade; but it's not clear if the revised forecasts will lead to selling activity.

After the downgrade, the twin analysts covering Guangzhou Jet Bio-Filtration are now predicting revenues of CN¥549m in 2024. If met, this would reflect a notable 19% improvement in sales compared to the last 12 months. Per-share earnings are expected to leap 80% to CN¥0.45. Before this latest update, the analysts had been forecasting revenues of CN¥651m and earnings per share (EPS) of CN¥0.69 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.

See our latest analysis for Guangzhou Jet Bio-Filtration

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Guangzhou Jet Bio-Filtration's past performance and to peers in the same industry. The analysts are definitely expecting Guangzhou Jet Bio-Filtration's growth to accelerate, with the forecast 19% annualised growth to the end of 2024 ranking favourably alongside historical growth of 13% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 19% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Guangzhou Jet Bio-Filtration is expected to grow at about the same rate as 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. 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. Given the serious cut to this year's outlook, it's clear that analysts have turned more bearish on Guangzhou Jet Bio-Filtration, and we wouldn't blame shareholders for feeling a little more cautious themselves.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At least one analyst has provided forecasts out to 2026, which can be seen 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 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.