Analysts Just Shaved Their Wuhan DR Laser Technology Corp.,Ltd (SZSE:300776) Forecasts Dramatically

The analysts covering Wuhan DR Laser Technology Corp.,Ltd (SZSE:300776) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. 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.

Following the downgrade, the most recent consensus for Wuhan DR Laser TechnologyLtd from its five analysts is for revenues of CN¥2.1b in 2024 which, if met, would be a meaningful 15% increase on its sales over the past 12 months. Per-share earnings are expected to expand 14% to CN¥2.19. Previously, the analysts had been modelling revenues of CN¥2.4b and earnings per share (EPS) of CN¥2.45 in 2024. Indeed, we can see that the analysts are a lot more bearish about Wuhan DR Laser TechnologyLtd's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Wuhan DR Laser TechnologyLtd

It'll come as no surprise then, to learn that the analysts have cut their price target 11% to CN¥49.83.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Wuhan DR Laser TechnologyLtd's growth to accelerate, with the forecast 32% annualised growth to the end of 2024 ranking favourably alongside historical growth of 18% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 22% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Wuhan DR Laser TechnologyLtd to grow faster than the wider 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. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than 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 Wuhan DR Laser TechnologyLtd.

After a downgrade like this, it's pretty clear that previous forecasts were too optimistic. What's more, we've spotted several possible issues with Wuhan DR Laser TechnologyLtd's business, like concerns around earnings quality. For more information, you can click here to discover this and the 1 other flag we've identified.

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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.