Analysts' Revenue Estimates For Wuxi DK Electronic Materials Co.,Ltd. (SZSE:300842) Are Surging Higher

Wuxi DK Electronic Materials Co.,Ltd. (SZSE:300842) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

After this upgrade, Wuxi DK Electronic MaterialsLtd's three analysts are now forecasting revenues of CN¥15b in 2024. This would be a huge 61% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to leap 69% to CN¥6.49. Before this latest update, the analysts had been forecasting revenues of CN¥13b and earnings per share (EPS) of CN¥6.26 in 2024. The forecasts seem more optimistic now, with a nice gain to revenue and a modest lift to earnings per share estimates.

View our latest analysis for Wuxi DK Electronic MaterialsLtd

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Wuxi DK Electronic MaterialsLtd's past performance and to peers in the same industry. It's clear from the latest estimates that Wuxi DK Electronic MaterialsLtd's rate of growth is expected to accelerate meaningfully, with the forecast 61% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 44% p.a. 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 24% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Wuxi DK Electronic MaterialsLtd is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Wuxi DK Electronic MaterialsLtd.

Analysts are definitely bullish on Wuxi DK Electronic MaterialsLtd, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including concerns around earnings quality. You can learn more, and discover the 1 other warning sign we've identified, for 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 upgrading 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.