Downgrade: Here's How Analysts See Chengdu Guibao Science & Technology Co.,Ltd. (SZSE:300019) Performing In The Near Term

One thing we could say about the analysts on Chengdu Guibao Science & Technology Co.,Ltd. (SZSE:300019) - 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.

After the downgrade, the six analysts covering Chengdu Guibao Science & TechnologyLtd are now predicting revenues of CN¥2.8b in 2024. If met, this would reflect a meaningful 11% improvement in sales compared to the last 12 months. Statutory earnings per share are supposed to shrink 6.2% to CN¥0.72 in the same period. Previously, the analysts had been modelling revenues of CN¥3.3b and earnings per share (EPS) of CN¥0.98 in 2024. Indeed, we can see that the analysts are a lot more bearish about Chengdu Guibao Science & TechnologyLtd's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Chengdu Guibao Science & TechnologyLtd

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 Chengdu Guibao Science & TechnologyLtd's revenue growth is expected to slow, with the forecast 15% annualised growth rate until the end of 2024 being well below the historical 23% p.a. growth over the last five years. Compare this to the 486 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 15% per year. Factoring in the forecast slowdown in growth, it looks like Chengdu Guibao Science & TechnologyLtd is forecast to grow at about the same rate as 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 Chengdu Guibao Science & TechnologyLtd. 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. After a cut like that, investors could be forgiven for thinking analysts are a lot more bearish on Chengdu Guibao Science & TechnologyLtd, and a few readers might choose to steer clear of the stock.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Chengdu Guibao Science & TechnologyLtd analysts - going out to 2026, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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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.

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