The latest analyst coverage could presage a bad day for Ningbo Ronbay New Energy Technology Co.,Ltd. (SHSE:688005), 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) estimates were cut sharply as the analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the downgrade, the consensus from nine analysts covering Ningbo Ronbay New Energy TechnologyLtd is for revenues of CN¥16b in 2024, implying a small 2.4% decline in sales compared to the last 12 months. Per-share earnings are expected to surge 105% to CN¥0.90. Previously, the analysts had been modelling revenues of CN¥22b and earnings per share (EPS) of CN¥1.49 in 2024. Indeed, we can see that the analysts are a lot more bearish about Ningbo Ronbay New Energy TechnologyLtd's prospects, administering a sizeable cut to revenue estimates and slashing their EPS estimates to boot.

It'll come as no surprise then, to learn that the analysts have cut their price target 8.1% to CN¥39.67.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 3.2% by the end of 2024. This indicates a significant reduction from annual growth of 41% 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 16% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Ningbo Ronbay New Energy 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 Ningbo Ronbay New Energy TechnologyLtd. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales 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 Ningbo Ronbay New Energy TechnologyLtd.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Ningbo Ronbay New Energy TechnologyLtd analysts - going out to 2026, 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 with high insider ownership.

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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.

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