News Flash: 14 Analysts Think G-bits Network Technology (Xiamen) Co., Ltd. (SHSE:603444) Earnings Are Under Threat

The latest analyst coverage could presage a bad day for G-bits Network Technology (Xiamen) Co., Ltd. (SHSE:603444), 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) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following this downgrade, G-bits Network Technology (Xiamen)'s 14 analysts are forecasting 2024 revenues to be CN¥4.2b, approximately in line with the last 12 months. Statutory earnings per share are expected to be CN¥15.70, roughly flat on the last 12 months. Before this latest update, the analysts had been forecasting revenues of CN¥5.1b and earnings per share (EPS) of CN¥20.33 in 2024. Indeed, we can see that the analysts are a lot more bearish about G-bits Network Technology (Xiamen)'s prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for G-bits Network Technology (Xiamen)

It'll come as no surprise then, to learn that the analysts have cut their price target 13% to CN¥292.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the G-bits Network Technology (Xiamen)'s past performance and to peers in the same industry. We would highlight that G-bits Network Technology (Xiamen)'s revenue growth is expected to slow, with the forecast 1.1% annualised growth rate until the end of 2024 being well below the historical 22% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 17% per year. Factoring in the forecast slowdown in growth, it seems obvious that G-bits Network Technology (Xiamen) is also expected to grow slower than other industry participants.

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. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of G-bits Network Technology (Xiamen).

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for G-bits Network Technology (Xiamen) 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 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.