Luoyang Jianlong Micro-nano New Material Co., Ltd's (SHSE:688357) Analyst Just Slashed This Year's Estimates

One thing we could say about the covering analyst on Luoyang Jianlong Micro-nano New Material Co., Ltd (SHSE:688357) - 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 analyst seeing grey clouds on the horizon.

Following the latest downgrade, the solitary analyst covering Luoyang Jianlong Micro-nano New Material provided consensus estimates of CN¥828m revenue in 2024, which would reflect a perceptible 2.6% decline on its sales over the past 12 months. Statutory earnings per share are anticipated to shrink 8.3% to CN¥1.14 in the same period. Previously, the analyst had been modelling revenues of CN¥1.1b and earnings per share (EPS) of CN¥1.86 in 2024. It looks like analyst sentiment has declined substantially, with a sizeable cut to revenue estimates and a pretty serious decline to earnings per share numbers as well.

View our latest analysis for Luoyang Jianlong Micro-nano New Material

It'll come as no surprise then, to learn that the analyst has cut their price target 27% to CN¥23.00.

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. We would highlight that sales are expected to reverse, with a forecast 2.6% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 20% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 15% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Luoyang Jianlong Micro-nano New Material is expected to lag the wider industry.

The Bottom Line

The biggest issue in the new estimates is that the analyst has reduced their earnings per share estimates, suggesting business headwinds lay ahead for Luoyang Jianlong Micro-nano New Material. Unfortunately the analyst also downgraded their revenue estimates, and industry data suggests that Luoyang Jianlong Micro-nano New Material's revenues are expected to grow slower than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with Luoyang Jianlong Micro-nano New Material, including concerns around earnings quality. For more information, you can click here to discover this and the 1 other warning sign 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.