Joinn Laboratories(China)Co.,Ltd. (SHSE:603127) Analysts Just Cut Their EPS Forecasts Substantially

Today is shaping up negative for Joinn Laboratories(China)Co.,Ltd. (SHSE:603127) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.

Following this downgrade, Joinn Laboratories(China)Co.Ltd's 14 analysts are forecasting 2024 revenues to be CN¥2.4b, approximately in line with the last 12 months. Statutory earnings per share are presumed to bounce 33% to CN¥0.71. Previously, the analysts had been modelling revenues of CN¥3.0b and earnings per share (EPS) of CN¥1.02 in 2024. Indeed, we can see that the analysts are a lot more bearish about Joinn Laboratories(China)Co.Ltd's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for Joinn Laboratories(China)Co.Ltd

The consensus price target fell 6.8% to CN¥20.59, with the weaker earnings outlook clearly leading analyst valuation estimates.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Joinn Laboratories(China)Co.Ltd's past performance and to peers in the same industry. We would highlight that Joinn Laboratories(China)Co.Ltd's revenue growth is expected to slow, with the forecast 1.4% annualised growth rate until the end of 2024 being well below the historical 35% 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 14% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Joinn Laboratories(China)Co.Ltd.

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 Joinn Laboratories(China)Co.Ltd. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Joinn Laboratories(China)Co.Ltd.

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 Joinn Laboratories(China)Co.Ltd 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.