Bearish: This Analyst Is Revising Their Beijing Jetsen Technology Co., Ltd (SZSE:300182) Revenue and EPS Prognostications

Today is shaping up negative for Beijing Jetsen Technology Co., Ltd (SZSE:300182) shareholders, with the covering analyst delivering a substantial negative revision to this year's forecasts. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analyst has soured majorly on the business. At CN¥3.97, shares are up 8.2% in the past 7 days. We'd be curious to see if the downgrade is enough to reverse investor sentiment on the business.

Following the downgrade, the latest consensus from Beijing Jetsen Technology's sole analyst is for revenues of CN¥3.0b in 2024, which would reflect a credible 7.8% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to shoot up 45% to CN¥0.19. Prior to this update, the analyst had been forecasting revenues of CN¥3.4b and earnings per share (EPS) of CN¥0.22 in 2024. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a considerable drop in earnings per share numbers as well.

See our latest analysis for Beijing Jetsen Technology

It'll come as no surprise then, to learn that the analyst has cut their price target 32% to CN¥4.18.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. One thing stands out from these estimates, which is that Beijing Jetsen Technology is forecast to grow faster in the future than it has in the past, with revenues expected to display 7.8% annualised growth until the end of 2024. If achieved, this would be a much better result than the 3.7% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 14% annually for the foreseeable future. Although Beijing Jetsen Technology's revenues are expected to improve, it seems that the analyst is still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The most important thing to take away is that the analyst cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately the analyst also downgraded their revenue estimates, and industry data suggests that Beijing Jetsen Technology'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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Beijing Jetsen Technology 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.