Beijing CTJ Information Technology Co., Ltd. (SZSE:301153) Analysts Just Cut Their EPS Forecasts Substantially

One thing we could say about the analysts on Beijing CTJ Information Technology Co., Ltd. (SZSE:301153) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. 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 latest downgrade, Beijing CTJ Information Technology's three analysts currently expect revenues in 2024 to be CN¥908m, approximately in line with the last 12 months. Statutory earnings per share are presumed to bounce 39% to CN¥0.47. Previously, the analysts had been modelling revenues of CN¥1.1b and earnings per share (EPS) of CN¥0.71 in 2024. 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.

Check out our latest analysis for Beijing CTJ Information Technology

Despite the cuts to forecast earnings, there was no real change to the CN¥39.75 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with a forecast 1.3% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 18% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 19% annually for the foreseeable future. It's pretty clear that Beijing CTJ Information Technology's revenues are expected to perform substantially worse 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, and industry data suggests that Beijing CTJ Information Technology's revenues are expected to grow slower than the wider market. The lack of change in the price target is puzzling in light of the downgrade but, with a serious decline expected this year, we wouldn't be surprised if investors were a bit wary of Beijing CTJ Information Technology.

So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with Beijing CTJ Information Technology, including concerns around earnings quality. For more information, you can click here to discover this and the 1 other risk 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.