Revenue Downgrade: Here's What Analysts Forecast For Leyard Optoelectronic Co., Ltd. (SZSE:300296)

Market forces rained on the parade of Leyard Optoelectronic Co., Ltd. (SZSE:300296) shareholders today, when the analysts downgraded their forecasts for this year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

Following the downgrade, the latest consensus from Leyard Optoelectronic's three analysts is for revenues of CN¥8.8b in 2024, which would reflect a solid 16% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to leap 201% to CN¥0.34. Previously, the analysts had been modelling revenues of CN¥10b and earnings per share (EPS) of CN¥0.36 in 2024. It looks like analyst sentiment has fallen somewhat in this update, with a measurable cut to revenue estimates and a minor downgrade to earnings per share numbers as well.

View our latest analysis for Leyard Optoelectronic

Analysts made no major changes to their price target of CN¥6.55, suggesting the downgrades are not expected to have a long-term impact on Leyard Optoelectronic's valuation.

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. The analysts are definitely expecting Leyard Optoelectronic's growth to accelerate, with the forecast 16% annualised growth to the end of 2024 ranking favourably alongside historical growth of 1.0% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 18% per year. Leyard Optoelectronic 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. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Leyard Optoelectronic going forwards.

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 Leyard Optoelectronic 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.