Need To Know: Analysts Just Made A Substantial Cut To Their Jade Bird Fire Co., Ltd. (SZSE:002960) Estimates

Today is shaping up negative for Jade Bird Fire Co., Ltd. (SZSE:002960) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.

Following the downgrade, the current consensus from Jade Bird Fire's three analysts is for revenues of CN¥5.8b in 2024 which - if met - would reflect a notable 19% increase on its sales over the past 12 months. Per-share earnings are expected to swell 19% to CN¥1.03. Prior to this update, the analysts had been forecasting revenues of CN¥6.5b and earnings per share (EPS) of CN¥1.17 in 2024. Indeed, we can see that the analysts are a lot more bearish about Jade Bird Fire's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for Jade Bird Fire

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Jade Bird Fire's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 19% growth on an annualised basis. This is compared to a historical growth rate of 24% over the past five years. Compare this to the 393 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 18% per year. So it's pretty clear that, while Jade Bird Fire's revenue growth is expected to slow, it's expected to grow roughly in line with the 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. 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 serious cut to this year's outlook, it's clear that analysts have turned more bearish on Jade Bird Fire, and we wouldn't blame shareholders for feeling a little more cautious themselves.

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 Jade Bird Fire 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 that insiders are buying.

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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.