Newsflash: Yidu Tech Inc. (HKG:2158) Analysts Have Been Trimming Their Revenue Forecasts

Today is shaping up negative for Yidu Tech Inc. (HKG:2158) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

Following this downgrade, Yidu Tech's four analysts are forecasting 2025 revenues to be CN¥793m, approximately in line with the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of CN¥894m in 2025. It looks like forecasts have become a fair bit less optimistic on Yidu Tech, given the substantial drop in revenue estimates.

Check out our latest analysis for Yidu Tech

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One thing stands out from these estimates, which is that Yidu Tech is forecast to grow faster in the future than it has in the past, with revenues expected to display 3.3% annualised growth until the end of 2025. If achieved, this would be a much better result than the 18% annual decline over the past three years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 18% annually for the foreseeable future. Although Yidu Tech's revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Yidu Tech this year. They're also anticipating slower revenue growth than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Yidu Tech after today.

Looking for more information? We have estimates for Yidu Tech from its four analysts out until 2027, 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 downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.