Analysts Just Shaved Their Jiangsu Pacific Quartz Co., Ltd (SHSE:603688) Forecasts Dramatically

Today is shaping up negative for Jiangsu Pacific Quartz Co., Ltd (SHSE:603688) 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. The stock price has risen 5.4% to CN¥90.73 over the past week. 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 Jiangsu Pacific Quartz's three analysts is for revenues of CN¥12b in 2024, which would reflect a major 64% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to ascend 19% to CN¥16.67. Previously, the analysts had been modelling revenues of CN¥14b and earnings per share (EPS) of CN¥26.05 in 2024. Indeed, we can see that the analysts are a lot more bearish about Jiangsu Pacific Quartz's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Jiangsu Pacific Quartz

It'll come as no surprise then, to learn that the analysts have cut their price target 8.1% to CN¥125.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Jiangsu Pacific Quartz's past performance and to peers in the same industry. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 64% growth on an annualised basis. That is in line with its 58% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 23% annually. So although Jiangsu Pacific Quartz is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

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. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better 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 Jiangsu Pacific Quartz.

There might be good reason for analyst bearishness towards Jiangsu Pacific Quartz, like concerns around earnings quality. Learn more, and discover the 1 other risk we've identified, for 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.