The Consensus EPS Estimates For CECEP Wind-power Corporation Co.,Ltd. (SHSE:601016) Just Fell Dramatically

Market forces rained on the parade of CECEP Wind-power Corporation Co.,Ltd. (SHSE:601016) shareholders today, when the analysts downgraded their forecasts for this year. Both revenue and earnings per share (EPS) estimates were cut sharply as the analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

After this downgrade, CECEP Wind-power CorporationLtd's dual analysts are now forecasting revenues of CN¥5.4b in 2024. This would be a reasonable 4.6% improvement in sales compared to the last 12 months. Per-share earnings are expected to accumulate 2.8% to CN¥0.24. Prior to this update, the analysts had been forecasting revenues of CN¥6.0b and earnings per share (EPS) of CN¥0.30 in 2024. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a large cut to earnings per share numbers as well.

See our latest analysis for CECEP Wind-power CorporationLtd

The consensus price target fell 16% to CN¥3.30, with the weaker earnings outlook clearly leading analyst valuation estimates.

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 CECEP Wind-power CorporationLtd's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 4.6% growth on an annualised basis. This is compared to a historical growth rate of 20% 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 7.0% per year. Factoring in the forecast slowdown in growth, it seems obvious that CECEP Wind-power CorporationLtd 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. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of CECEP Wind-power CorporationLtd.

In light of the downgrade, our automated discounted cash flow valuation tool suggests that CECEP Wind-power CorporationLtd could now be moderately overvalued. Find out why, and see how we estimate the valuation for 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.