These Analysts Think Suzhou Everbright Photonics Co., Ltd.'s (SHSE:688048) Earnings Are Under Threat

The analysts covering Suzhou Everbright Photonics Co., Ltd. (SHSE:688048) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.

After this downgrade, Suzhou Everbright Photonics' five analysts are now forecasting revenues of CN¥331m in 2024. This would be a major 20% improvement in sales compared to the last 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 52% to CN¥0.34. Prior to this update, the analysts had been forecasting revenues of CN¥395m and earnings per share (EPS) of CN¥0.23 in 2024. There looks to have been a major change in sentiment regarding Suzhou Everbright Photonics' prospects, with a substantial drop in revenues and the analysts now forecasting a loss instead of a profit.

See our latest analysis for Suzhou Everbright Photonics

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Suzhou Everbright Photonics is forecast to grow faster in the future than it has in the past, with revenues expected to display 45% annualised growth until the end of 2024. If achieved, this would be a much better result than the 15% annual decline over the past year. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 23% annually. So it looks like Suzhou Everbright Photonics is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away is that analysts are expecting Suzhou Everbright Photonics to become unprofitable this year. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. Given the serious cut to this year's outlook, it's clear that analysts have turned more bearish on Suzhou Everbright Photonics, and we wouldn't blame shareholders for feeling a little more cautious themselves.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Suzhou Everbright Photonics 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 with high insider ownership.

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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.