One thing we could say about the analysts on Jiangsu Chuanzhiboke Education Technology Co., LTD. (SZSE:003032) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.

Following the downgrade, the latest consensus from Jiangsu Chuanzhiboke Education Technology's six analysts is for revenues of CN¥606m in 2024, which would reflect a notable 13% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to leap 602% to CN¥0.28. Prior to this update, the analysts had been forecasting revenues of CN¥780m and earnings per share (EPS) of CN¥0.45 in 2024. Indeed, we can see that the analysts are a lot more bearish about Jiangsu Chuanzhiboke Education Technology's prospects, administering a sizeable cut to revenue estimates and slashing their EPS estimates to boot.

Analysts made no major changes to their price target of CN¥15.11, suggesting the downgrades are not expected to have a long-term impact on Jiangsu Chuanzhiboke Education Technology's valuation.

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. For example, we noticed that Jiangsu Chuanzhiboke Education Technology's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 13% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 3.1% a year 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 revenue grow 20% per year. Although Jiangsu Chuanzhiboke Education Technology's revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader 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. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. The lack of change in the price target is puzzling in light of the downgrade but, with a serious decline expected this year, we wouldn't be surprised if investors were a bit wary of Jiangsu Chuanzhiboke Education Technology.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Jiangsu Chuanzhiboke Education Technology analysts - 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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