Analysts Have Just Cut Their TianJin 712 Communication & Broadcasting Co., Ltd. (SHSE:603712) Revenue Estimates By 17%

The latest analyst coverage could presage a bad day for TianJin 712 Communication & Broadcasting Co., Ltd. (SHSE:603712), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

Following the downgrade, the latest consensus from TianJin 712 Communication & Broadcasting's four analysts is for revenues of CN¥4.0b in 2024, which would reflect a sizeable 31% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to jump 89% to CN¥0.73. Previously, the analysts had been modelling revenues of CN¥4.9b and earnings per share (EPS) of CN¥1.02 in 2024. Indeed, we can see that the analysts are a lot more bearish about TianJin 712 Communication & Broadcasting's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for TianJin 712 Communication & Broadcasting

The consensus price target fell 17% to CN¥22.48, 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 TianJin 712 Communication & Broadcasting's past performance and to peers in the same industry. The analysts are definitely expecting TianJin 712 Communication & Broadcasting's growth to accelerate, with the forecast 31% annualised growth to the end of 2024 ranking favourably alongside historical growth of 13% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 21% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that TianJin 712 Communication & Broadcasting is expected to grow much faster than its 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. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on TianJin 712 Communication & Broadcasting after today.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple TianJin 712 Communication & Broadcasting analysts - going out to 2026, and you can see them free on our platform here.

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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.