News Flash: 5 Analysts Think Unigroup Guoxin Microelectronics Co., Ltd. (SZSE:002049) Earnings Are Under Threat

The analysts covering Unigroup Guoxin Microelectronics Co., Ltd. (SZSE:002049) 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, Unigroup Guoxin Microelectronics' five analysts are now forecasting revenues of CN¥9.0b in 2024. This would be a decent 19% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to surge 21% to CN¥3.63. Previously, the analysts had been modelling revenues of CN¥10b and earnings per share (EPS) of CN¥4.44 in 2024. Indeed, we can see that the analysts are a lot more bearish about Unigroup Guoxin Microelectronics' prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Unigroup Guoxin Microelectronics

It'll come as no surprise then, to learn that the analysts have cut their price target 22% to CN¥83.08.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Unigroup Guoxin Microelectronics' revenue growth is expected to slow, with the forecast 19% annualised growth rate until the end of 2024 being well below the historical 24% p.a. growth over the last five years. Compare this to the 213 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 22% per year. So it's pretty clear that, while Unigroup Guoxin Microelectronics' revenue growth is expected to slow, it's expected to grow roughly in line with the 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. There was also a drop in their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as 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 Unigroup Guoxin Microelectronics.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Unigroup Guoxin Microelectronics 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 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.