Supcon Technology Co.,Ltd (SHSE:688777) Analysts Just Cut Their EPS Forecasts Substantially

One thing we could say about the analysts on Supcon Technology Co.,Ltd (SHSE:688777) - 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) forecasts went under the knife, suggesting analysts have soured majorly on the business.

After the downgrade, the 17 analysts covering Supcon TechnologyLtd are now predicting revenues of CN¥10b in 2025. If met, this would reflect a notable 11% improvement in sales compared to the last 12 months. Per-share earnings are expected to step up 16% to CN¥1.67. Prior to this update, the analysts had been forecasting revenues of CN¥12b and earnings per share (EPS) of CN¥1.91 in 2025. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a real cut to earnings per share numbers as well.

View our latest analysis for Supcon TechnologyLtd

Analysts made no major changes to their price target of CN¥59.63, suggesting the downgrades are not expected to have a long-term impact on Supcon TechnologyLtd's valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Supcon TechnologyLtd's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Supcon TechnologyLtd's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 11% growth on an annualised basis. This is compared to a historical growth rate of 26% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 18% per year. Factoring in the forecast slowdown in growth, it seems obvious that Supcon TechnologyLtd is also expected to grow slower than other industry participants.

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. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. We're also surprised to see that the price target went unchanged. Still, deteriorating business conditions (assuming accurate forecasts!) can be a leading indicator for the stock price, so we wouldn't blame investors for being more cautious on Supcon TechnologyLtd after the downgrade.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Supcon TechnologyLtd going out to 2027, 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.