These Analysts Just Made A Notable Downgrade To Their Unigroup Guoxin Microelectronics Co., Ltd. (SZSE:002049) EPS Forecasts

Market forces rained on the parade of Unigroup Guoxin Microelectronics Co., Ltd. (SZSE:002049) shareholders today, when the analysts downgraded their forecasts for this year. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

After the downgrade, the six analysts covering Unigroup Guoxin Microelectronics are now predicting revenues of CN¥7.8b in 2024. If met, this would reflect a decent 8.4% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to ascend 16% to CN¥3.09. Prior to this update, the analysts had been forecasting revenues of CN¥8.7b and earnings per share (EPS) of CN¥3.86 in 2024. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a real cut to earnings per share numbers as well.

See our latest analysis for Unigroup Guoxin Microelectronics

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Unigroup Guoxin Microelectronics' revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2024 being well below the historical 23% 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 23% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Unigroup Guoxin Microelectronics.

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. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. After a cut like that, investors could be forgiven for thinking analysts are a lot more bearish on Unigroup Guoxin Microelectronics, and a few readers might choose to steer clear of the stock.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Unigroup Guoxin Microelectronics 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.