The analysts covering Jiangyin Jianghua Microelectronics Materials Co., Ltd (SHSE:603078) 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) forecasts went under the knife, suggesting analysts have soured majorly on the business.
Following the downgrade, the most recent consensus for Jiangyin Jianghua Microelectronics Materials from its three analysts is for revenues of CN¥1.2b in 2024 which, if met, would be a major 21% increase on its sales over the past 12 months. Per-share earnings are expected to shoot up 50% to CN¥0.41. Before this latest update, the analysts had been forecasting revenues of CN¥1.6b and earnings per share (EPS) of CN¥0.56 in 2024. Indeed, we can see that the analysts are a lot more bearish about Jiangyin Jianghua Microelectronics Materials' prospects, administering a pretty serious reduction to revenue estimates and slashing their EPS estimates to boot.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Jiangyin Jianghua Microelectronics Materials' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Jiangyin Jianghua Microelectronics Materials'historical trends, as the 21% annualised revenue growth to the end of 2024 is roughly in line with the 21% annual revenue growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 18% per year. So although Jiangyin Jianghua Microelectronics Materials is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.
The Bottom Line
The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Lamentably, they also downgraded their sales forecasts, but the business is still expected to grow at roughly the same rate as the market itself. 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 Jiangyin Jianghua Microelectronics Materials, 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 Jiangyin Jianghua Microelectronics Materials going out to 2026, and you can see them free on our platform here.
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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.