China Leadshine Technology Co., Ltd. (SZSE:002979) Analysts Are Reducing Their Forecasts For This Year

Today is shaping up negative for China Leadshine Technology Co., Ltd. (SZSE:002979) 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 China Leadshine Technology's twin analysts is for revenues of CN¥1.6b in 2024 which - if met - would reflect a modest 3.4% increase on its sales over the past 12 months. Statutory earnings per share are presumed to expand 17% to CN¥0.69. Previously, the analysts had been modelling revenues of CN¥1.8b and earnings per share (EPS) of CN¥0.79 in 2024. Indeed, we can see that the analysts are a lot more bearish about China Leadshine Technology's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for China Leadshine Technology

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 China Leadshine Technology's revenue growth is expected to slow, with the forecast 3.4% annualised growth rate until the end of 2024 being well below the historical 16% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 18% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than China Leadshine Technology.

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. After a cut like that, investors could be forgiven for thinking analysts are a lot more bearish on China Leadshine Technology, and a few readers might choose to steer clear of the stock.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for China Leadshine Technology going out as far as 2025, 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.