Some China Aircraft Leasing Group Holdings Limited (HKG:1848) Analysts Just Made A Major Cut To Next Year's Estimates

Today is shaping up negative for China Aircraft Leasing Group Holdings Limited (HKG:1848) 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 analysts seeing grey clouds on the horizon.

Following the downgrade, the most recent consensus for China Aircraft Leasing Group Holdings from its three analysts is for revenues of HK$3.6b in 2021 which, if met, would be a substantial 74% increase on its sales over the past 12 months. Per-share earnings are expected to bounce 151% to HK$1.21. Previously, the analysts had been modelling revenues of HK$4.2b and earnings per share (EPS) of HK$1.55 in 2021. Indeed, we can see that the analysts are a lot more bearish about China Aircraft Leasing Group Holdings' prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for China Aircraft Leasing Group Holdings

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting China Aircraft Leasing Group Holdings' growth to accelerate, with the forecast 74% annualised growth to the end of 2021 ranking favourably alongside historical growth of 17% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 8.5% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that China Aircraft Leasing Group Holdings is expected to grow much faster than its industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for China Aircraft Leasing Group Holdings. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. After a cut like that, investors could be forgiven for thinking analysts are a lot more bearish on China Aircraft Leasing Group Holdings, and a few readers might choose to steer clear of the stock.

There might be good reason for analyst bearishness towards China Aircraft Leasing Group Holdings, like its declining profit margins. For more information, you can click here to discover this and the 3 other warning signs we've identified.

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. 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.
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