Need To Know: Analysts Just Made A Substantial Cut To Their Shanghai Anlogic Infotech Co., Ltd. (SHSE:688107) Estimates

The latest analyst coverage could presage a bad day for Shanghai Anlogic Infotech Co., Ltd. (SHSE:688107), 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) forecasts went under the knife, suggesting analysts have soured majorly on the business.

Following the downgrade, the current consensus from Shanghai Anlogic Infotech's four analysts is for revenues of CN¥747m in 2024 which - if met - would reflect a major 22% increase on its sales over the past 12 months. Losses are expected to be contained, narrowing 11% per share from last year to CN¥0.53 per share. Yet before this consensus update, the analysts had been forecasting revenues of CN¥1.0b and losses of CN¥0.30 per share in 2024. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.

View our latest analysis for Shanghai Anlogic Infotech

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. For example, we noticed that Shanghai Anlogic Infotech's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 48% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 0.7% a year over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 23% per year. Not only are Shanghai Anlogic Infotech's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that analysts increased their loss per share estimates for this year. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. We wouldn't be surprised to find shareholders feeling a bit shell-shocked, after these downgrades. It looks like analysts have become a lot more bearish on Shanghai Anlogic Infotech, and their negativity could be grounds for caution.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Shanghai Anlogic Infotech analysts - 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.