One Ozner Water International Holding Limited (HKG:2014) Analyst Just Made A Major Cut To Next Year's Estimates
The latest analyst coverage could presage a bad day for Ozner Water International Holding Limited (HKG:2014), with the covering analyst 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 the analyst factored in the latest outlook for the business, concluding that they were too optimistic previously.
Following this downgrade, Ozner Water International Holding's solo analyst are forecasting 2020 revenues to be CN¥1.7b, approximately in line with the last 12 months. Statutory earnings per share are supposed to tumble 99% to CN¥0.00091 in the same period. Before this latest update, the analyst had been forecasting revenues of CN¥2.1b and earnings per share (EPS) of CN¥0.081 in 2020. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a large cut to earnings per share numbers as well.
See our latest analysis for Ozner Water International Holding
It'll come as no surprise then, to learn that the analyst has cut their price target 73% to HK$0.80.
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. It's pretty clear that there is an expectation that Ozner Water International Holding's revenue growth will slow down substantially, with revenues next year expected to grow 1.4%, compared to a historical growth rate of 28% 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 8.1% per year. Factoring in the forecast slowdown in growth, it seems obvious that Ozner Water International Holding is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing to take away is that the analyst cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately the analyst also downgraded their revenue estimates, and industry data suggests that Ozner Water International Holding's 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.
So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with Ozner Water International Holding, including its declining profit margins. For more information, you can click here to discover this and the 4 other concerns we've identified.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
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