Party Time: Brokers Just Made Major Increases To Their Shenzhen Longsys Electronics Co., Ltd. (SZSE:301308) Earnings Forecasts

Shareholders in Shenzhen Longsys Electronics Co., Ltd. (SZSE:301308) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Following the upgrade, the current consensus from Shenzhen Longsys Electronics' five analysts is for revenues of CN¥15b in 2024 which - if met - would reflect a meaningful 16% increase on its sales over the past 12 months. Losses are expected to turn into profits real soon, with the analysts forecasting CN¥3.60 in per-share earnings. Prior to this update, the analysts had been forecasting revenues of CN¥13b and earnings per share (EPS) of CN¥1.19 in 2024. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

Check out our latest analysis for Shenzhen Longsys Electronics

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. We would highlight that Shenzhen Longsys Electronics' revenue growth is expected to slow, with the forecast 22% annualised growth rate until the end of 2024 being well below the historical 75% growth over the last year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 16% annually. Even after the forecast slowdown in growth, it seems obvious that Shenzhen Longsys Electronics is also expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. More bullish expectations could be a signal for investors to take a closer look at Shenzhen Longsys Electronics.

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 Shenzhen Longsys Electronics going out to 2026, 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 upgrading their estimates. So you may also wish to search this free list of stocks 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.