These Analysts Just Made A Sizeable Downgrade To Their Geovis Technology Co.,Ltd (SHSE:688568) EPS Forecasts

The latest analyst coverage could presage a bad day for Geovis Technology Co.,Ltd (SHSE:688568), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.

After this downgrade, Geovis TechnologyLtd's seven analysts are now forecasting revenues of CN¥4.3b in 2025. This would be a sizeable 32% improvement in sales compared to the last 12 months. Per-share earnings are expected to leap 37% to CN¥0.89. Previously, the analysts had been modelling revenues of CN¥5.1b and earnings per share (EPS) of CN¥1.24 in 2025. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a pretty serious decline to earnings per share numbers as well.

See our latest analysis for Geovis TechnologyLtd

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 can infer from the latest estimates that forecasts expect a continuation of Geovis TechnologyLtd'shistorical trends, as the 32% annualised revenue growth to the end of 2025 is roughly in line with the 38% annual revenue growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 18% annually. So although Geovis TechnologyLtd is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

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 Geovis TechnologyLtd. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better 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 Geovis TechnologyLtd, and their negativity could be grounds for caution.

In light of the downgrade, our automated discounted cash flow valuation tool suggests that Geovis TechnologyLtd could now be moderately overvalued. You can learn more about our valuation methodology 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 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.