One thing we could say about the analysts on Shenzhen Capol International & Associatesco.,Ltd (SZSE:002949) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.

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Following the latest downgrade, Shenzhen Capol International & Associatesco.Ltd's five analysts currently expect revenues in 2025 to be CN¥1.2b, approximately in line with the last 12 months. Statutory earnings per share are presumed to rise 9.7% to CN¥0.70. Before this latest update, the analysts had been forecasting revenues of CN¥1.4b and earnings per share (EPS) of CN¥0.96 in 2025. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a large cut to earnings per share numbers as well.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would also point out that the forecast 1.5% annualised revenue decline to the end of 2025 is better than the historical trend, which saw revenues shrink 7.4% annually over the past five years Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 15% annually. So while a broad number of companies are forecast to grow, unfortunately Shenzhen Capol International & Associatesco.Ltd is expected to see its sales affected worse than other companies in the 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 Shenzhen Capol International & Associatesco.Ltd. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Shenzhen Capol International & Associatesco.Ltd's revenues are expected to grow slower than the wider market. Given the serious cut to this year's outlook, it's clear that analysts have turned more bearish on Shenzhen Capol International & Associatesco.Ltd, and we wouldn't blame shareholders for feeling a little more cautious themselves.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Shenzhen Capol International & Associatesco.Ltd going out to 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.