Analysts Just Slashed Their L.K. Technology Holdings Limited (HKG:558) EPS Numbers

The latest analyst coverage could presage a bad day for L.K. Technology Holdings Limited (HKG:558), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the downgrade, the latest consensus from L.K. Technology Holdings' seven analysts is for revenues of HK$6.5b in 2025, which would reflect a decent 11% improvement in sales compared to the last 12 months. Per-share earnings are expected to increase 4.2% to HK$0.40. Prior to this update, the analysts had been forecasting revenues of HK$7.5b and earnings per share (EPS) of HK$0.44 in 2025. Indeed, we can see that the analysts are a lot more bearish about L.K. Technology Holdings' prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for L.K. Technology Holdings

It'll come as no surprise then, to learn that the analysts have cut their price target 7.8% to HK$5.65.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the L.K. Technology Holdings' past performance and to peers in the same industry. We would highlight that L.K. Technology Holdings' revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2025 being well below the historical 16% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% per year. Factoring in the forecast slowdown in growth, it seems obvious that L.K. Technology Holdings is also expected to grow slower than other industry participants.

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 L.K. Technology Holdings. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that L.K. Technology Holdings' revenues are expected to grow slower than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for L.K. Technology Holdings going out to 2027, 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.

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