The Consensus EPS Estimates For Crazy Sports Group Limited (HKG:82) Just Fell A Lot

Today is shaping up negative for Crazy Sports Group Limited (HKG:82) shareholders, with the covering analyst delivering a substantial negative revision to this year's forecasts. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analyst seeing grey clouds on the horizon.

Following the downgrade, the current consensus from Crazy Sports Group's sole analyst is for revenues of HK$761m in 2022 which - if met - would reflect a huge 49% increase on its sales over the past 12 months. Statutory earnings per share are supposed to plummet 32% to HK$0.024 in the same period. Before this latest update, the analyst had been forecasting revenues of HK$1.1b and earnings per share (EPS) of HK$0.051 in 2022. Indeed, we can see that the analyst is a lot more bearish about Crazy Sports Group's prospects, administering a pretty serious reduction to revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for Crazy Sports Group

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. One thing stands out from these estimates, which is that Crazy Sports Group is forecast to grow faster in the future than it has in the past, with revenues expected to display 49% annualised growth until the end of 2022. If achieved, this would be a much better result than the 10% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 13% annually. So it looks like Crazy Sports Group is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The biggest issue in the new estimates is that the analyst has reduced their earnings per share estimates, suggesting business headwinds lay ahead for Crazy Sports Group. Unfortunately, the analyst also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. Given the serious cut to this year's outlook, it's clear that the analyst has turned more bearish on Crazy Sports Group, and we wouldn't blame shareholders for feeling a little more cautious themselves.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for Crazy Sports Group going out as far as 2024, 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 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.