Revenue Downgrade: Here's What Analysts Forecast For Newland Digital Technology Co.,Ltd. (SZSE:000997)

Market forces rained on the parade of Newland Digital Technology Co.,Ltd. (SZSE:000997) shareholders today, when the analysts downgraded their forecasts for this year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

After this downgrade, Newland Digital TechnologyLtd's five analysts are now forecasting revenues of CN¥8.4b in 2024. This would be an okay 4.5% improvement in sales compared to the last 12 months. Per-share earnings are expected to bounce 22% to CN¥1.17. Previously, the analysts had been modelling revenues of CN¥9.5b and earnings per share (EPS) of CN¥1.25 in 2024. Indeed, we can see that analyst sentiment has declined measurably after the new consensus came out, with a substantial drop in revenue estimates and a minor downgrade to EPS estimates to boot.

See our latest analysis for Newland Digital TechnologyLtd

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Newland Digital TechnologyLtd'shistorical trends, as the 6.0% annualised revenue growth to the end of 2024 is roughly in line with the 5.5% annual revenue growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 18% annually. So it's pretty clear that Newland Digital TechnologyLtd is expected to grow slower than similar companies in the same 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 Newland Digital TechnologyLtd. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Newland Digital TechnologyLtd's revenues are expected to grow slower than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Newland Digital TechnologyLtd going forwards.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Newland Digital TechnologyLtd 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 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.