Some BMC Medical Co., Ltd. (SZSE:301367) Analysts Just Made A Major Cut To Next Year's Estimates

One thing we could say about the analysts on BMC Medical Co., Ltd. (SZSE:301367) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.

Following the downgrade, the current consensus from BMC Medical's dual analysts is for revenues of CN¥1.1b in 2024 which - if met - would reflect a sizeable 40% increase on its sales over the past 12 months. Per-share earnings are expected to surge 49% to CN¥2.43. Previously, the analysts had been modelling revenues of CN¥1.2b and earnings per share (EPS) of CN¥3.44 in 2024. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a pretty serious decline to earnings per share numbers as well.

View our latest analysis for BMC Medical

Analysts made no major changes to their price target of CN¥86.10, suggesting the downgrades are not expected to have a long-term impact on BMC Medical'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. For example, we noticed that BMC Medical's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 40% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 53% a year over the past year. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 19% annually. Not only are BMC Medical's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than 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. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better 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 BMC Medical.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for BMC Medical going out as far as 2026, and you can see them free on our platform here.

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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.