Bearish: Analysts Just Cut Their Jiangyin Jianghua Microelectronics Materials Co., Ltd (SHSE:603078) Revenue and EPS estimates

The analysts covering Jiangyin Jianghua Microelectronics Materials Co., Ltd (SHSE:603078) 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) forecasts went under the knife, suggesting the analysts have soured majorly on the business.

Following the downgrade, the latest consensus from Jiangyin Jianghua Microelectronics Materials' three analysts is for revenues of CN¥1.2b in 2024, which would reflect a substantial 21% improvement in sales compared to the last 12 months. Per-share earnings are expected to bounce 50% to CN¥0.41. Prior to this update, the analysts had been forecasting revenues of CN¥1.6b and earnings per share (EPS) of CN¥0.56 in 2024. Indeed, we can see that the analysts are a lot more bearish about Jiangyin Jianghua Microelectronics Materials' prospects, administering a pretty serious reduction to revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for Jiangyin Jianghua Microelectronics Materials

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. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 21% growth on an annualised basis. That is in line with its 21% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 18% per year. So although Jiangyin Jianghua Microelectronics Materials is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider 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 Jiangyin Jianghua Microelectronics Materials. 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 Jiangyin Jianghua Microelectronics Materials, and their negativity could be grounds for caution.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Jiangyin Jianghua Microelectronics Materials analysts - 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.