The latest analyst coverage could presage a bad day for Longshine Technology Group Co., Ltd. (SZSE:300682), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.

After this downgrade, Longshine Technology Group's eleven analysts are now forecasting revenues of CN¥5.4b in 2024. This would be a decent 13% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to soar 25% to CN¥0.70. Previously, the analysts had been modelling revenues of CN¥6.3b and earnings per share (EPS) of CN¥0.90 in 2024. Indeed, we can see that the analysts are a lot more bearish about Longshine Technology Group's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

The consensus price target fell 7.0% to CN¥17.59, with the weaker earnings outlook clearly leading analyst valuation estimates.

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. We can infer from the latest estimates that forecasts expect a continuation of Longshine Technology Group'shistorical trends, as the 13% annualised revenue growth to the end of 2024 is roughly in line with the 13% annual revenue growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 21% per year. So it's pretty clear that Longshine Technology Group is expected to grow slower than similar companies in the same 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 Longshine Technology Group. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Longshine Technology Group'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.

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 Longshine Technology Group going out to 2026, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies 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.