The analysts covering National Silicon Industry Group Co., Ltd. (SHSE:688126) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following this downgrade, National Silicon Industry Group's ten analysts are forecasting 2023 revenues to be CN¥3.6b, approximately in line with the last 12 months. Statutory earnings per share are anticipated to plummet 28% to CN¥0.12 in the same period. Before this latest update, the analysts had been forecasting revenues of CN¥4.4b and earnings per share (EPS) of CN¥0.14 in 2023. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a considerable drop in earnings per share numbers as well.

View our latest analysis for National Silicon Industry Group

It'll come as no surprise then, to learn that the analysts have cut their price target 6.0% to CN¥21.78.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the National Silicon Industry Group's past performance and to peers in the same industry. It's pretty clear that there is an expectation that National Silicon Industry Group's revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 3.5% growth on an annualised basis. This is compared to a historical growth rate of 29% over the past three years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 24% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than National Silicon Industry Group.

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 National Silicon Industry Group. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that National Silicon Industry Group's revenues are expected to grow slower than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of National Silicon Industry Group.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple National Silicon Industry Group analysts - going out to 2025, 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.