Jinko Solar Co., Ltd. (SHSE:688223) Analysts Just Slashed This Year's Revenue Estimates By 14%

Today is shaping up negative for Jinko Solar Co., Ltd. (SHSE:688223) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

Following the latest downgrade, the 14 analysts covering Jinko Solar provided consensus estimates of CN¥106b revenue in 2024, which would reflect a considerable 11% decline on its sales over the past 12 months. Statutory earnings per share are anticipated to nosedive 32% to CN¥0.51 in the same period. Previously, the analysts had been modelling revenues of CN¥123b and earnings per share (EPS) of CN¥0.55 in 2024. It looks like analyst sentiment has fallen somewhat in this update, with a substantial drop in revenue estimates and a minor downgrade to earnings per share numbers as well.

Check out our latest analysis for Jinko Solar

It'll come as no surprise then, to learn that the analysts have cut their price target 10% to CN¥9.52.

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. We would highlight that sales are expected to reverse, with a forecast 11% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 28% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 23% per year. It's pretty clear that Jinko Solar's revenues are expected to perform substantially worse than the wider industry.

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 Jinko Solar. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Jinko Solar's revenues are expected to grow slower than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by recent business developments, leading to a lower estimate of Jinko Solar's future valuation. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Jinko Solar going forwards.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Jinko Solar analysts - going out to 2026, and you can see them 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.

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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.