Analysts Are More Bearish On Changzhou Fusion New Material Co., Ltd. (SHSE:688503) Than They Used To Be

One thing we could say about the analysts on Changzhou Fusion New Material Co., Ltd. (SHSE:688503) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) estimates were cut sharply as the analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

After this downgrade, Changzhou Fusion New Material's four analysts are now forecasting revenues of CN¥15b in 2025. This would be a meaningful 18% improvement in sales compared to the last 12 months. Per-share earnings are expected to bounce 39% to CN¥2.53. Previously, the analysts had been modelling revenues of CN¥17b and earnings per share (EPS) of CN¥3.35 in 2025. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a pretty serious decline to earnings per share numbers as well.

Check out our latest analysis for Changzhou Fusion New Material

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Changzhou Fusion New Material's revenue growth is expected to slow, with the forecast 18% annualised growth rate until the end of 2025 being well below the historical 33% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 24% annually. Factoring in the forecast slowdown in growth, it seems obvious that Changzhou Fusion New Material is also expected to grow slower than other industry participants.

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 Changzhou Fusion New Material. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Changzhou Fusion New Material's revenues are expected to grow slower 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 Changzhou Fusion New Material, and their negativity could be grounds for caution.

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 Changzhou Fusion New Material 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.