News Flash: 3 Analysts Think Beijing CTJ Information Technology Co., Ltd. (SZSE:301153) Earnings Are Under Threat

The analysts covering Beijing CTJ Information Technology Co., Ltd. (SZSE:301153) 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) forecasts went under the knife, suggesting analysts have soured majorly on the business.

After this downgrade, Beijing CTJ Information Technology's three analysts are now forecasting revenues of CN¥1.3b in 2024. This would be a meaningful 17% improvement in sales compared to the last 12 months. Per-share earnings are expected to shoot up 37% to CN¥0.89. Prior to this update, the analysts had been forecasting revenues of CN¥1.5b and earnings per share (EPS) of CN¥1.07 in 2024. Indeed, we can see that the analysts are a lot more bearish about Beijing CTJ Information Technology's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for Beijing CTJ Information Technology

The consensus price target fell 31% to CN¥29.50, with the weaker earnings outlook clearly leading analyst valuation estimates.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Beijing CTJ Information Technology's past performance and to peers in the same industry. It's clear from the latest estimates that Beijing CTJ Information Technology's rate of growth is expected to accelerate meaningfully, with the forecast 17% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 8.4% over the past year. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 18% per year. Beijing CTJ Information Technology is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

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. Lamentably, they also downgraded their sales forecasts, but the business is still expected to grow at roughly the same rate as the market itself. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Beijing CTJ Information Technology analysts - going out to 2026, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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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.