The latest analyst coverage could presage a bad day for Shenzhen Crastal Technology Co.,Ltd (SZSE:300824), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.
Following the latest downgrade, Shenzhen Crastal TechnologyLtd's five analysts currently expect revenues in 2024 to be CN¥733m, approximately in line with the last 12 months. Statutory earnings per share are presumed to leap 21% to CN¥0.27. Prior to this update, the analysts had been forecasting revenues of CN¥862m and earnings per share (EPS) of CN¥0.33 in 2024. Indeed, we can see that the analysts are a lot more bearish about Shenzhen Crastal TechnologyLtd's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.
Check out our latest analysis for Shenzhen Crastal TechnologyLtd
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. We would highlight that sales are expected to reverse, with a forecast 1.2% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 8.6% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 10% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Shenzhen Crastal TechnologyLtd is expected to lag the wider 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 Crastal TechnologyLtd. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Shenzhen Crastal TechnologyLtd's revenues are expected to grow slower than the wider market. We wouldn't be surprised to find shareholders feeling a bit shell-shocked, after these downgrades. It looks like analysts have become a lot more bearish on Shenzhen Crastal TechnologyLtd, and their negativity could be grounds for caution.
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 Shenzhen Crastal TechnologyLtd 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.