Analysts are more bearish on Guangzhou Tingzi Materials Technology Co., Ltd. (SZSE:002709) than previously.

Analysts Covering Guangzhou Tingzi Material Technology Co., Ltd. (SZSE:002709) today significantly revised its statutory forecast for this year, resulting in negative news for shareholders. Revenue and earnings per share (EPS) forecasts were both revised downward, with analysts suggesting primarily a deterioration in the business. At CAD 22.23, the stock price has increased by 6.5% in the past 7 days. It's no wonder investors change their minds about a business in response to a downgrade. However, it is unclear whether forecast revisions will lead to selling activity.

Following the downgrade, Guangzhou Tinci Materials Technology's 14 analysts forecast sales of CA$16 billion in 2024. This amounts to his 5.4% improvement in sales compared to the previous 12 months. Statutory earnings per share for the same period are expected to decline by 18% to RMB0.81. Before this latest update, analysts had been forecasting revenue of CA$20b and earnings per share (EPS) of CA$1.51 in 2024. Analyst sentiment appears to have declined significantly, with sales estimates being revised significantly lower, and revenue estimates also being revised significantly lower. Also the earnings per share figures.

Check out our latest analysis for Guangzhou Tingzi Material Technology.

The consensus price target fell 8.3% to RMB22.09, with the deteriorating earnings outlook clearly driving analysts' valuation expectations.

Of course, another way to analyze these forecasts is to measure them against the industry itself. It's clear that Guangzhou Tinci Materials Technology's earnings growth is expected to slow significantly, with its earnings expected to grow at an annualized rate of 5.4% to the end of 2024. This compares to a historical growth rate of 46% over the past five years. For comparison, other companies in the industry that are covered by analysts are expected to grow their revenue at 17% per year. Considering the predicted growth slowdown, it seems clear that Guangzhou Tinci Materials Technology is also expected to grow slower than other industry participants.

conclusion

Most importantly, analysts cut their earnings per share forecasts in anticipation of a clear deterioration in business conditions. Unfortunately, the company has also cut its revenue forecast, with its latest forecast suggesting that sales growth for the business will be slower than the broader market. With such a significant change in analyst sentiment, it would be understandable if our readers were a little cautious about Guangzhou Tingzi Materials Technology.

Still, the long-term prospects of a business are far more important than next year's earnings. At Simply Wall St, we have all analyst forecasts for Guangzhou Tingzi Materials Technology out to 2026, available for free on our platform.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodologies, and the articles are not intended as financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.