One thing we could say about the analysts on Anhui Ronds Science & Technology Incorporated Company (SHSE:688768) - 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 the analysts have soured majorly on the business.

After the downgrade, the three analysts covering Anhui Ronds Science & Technology are now predicting revenues of CN¥793m in 2024. If met, this would reflect a sizeable 51% improvement in sales compared to the last 12 months. Per-share earnings are expected to shoot up 173% to CN¥1.84. Prior to this update, the analysts had been forecasting revenues of CN¥962m and earnings per share (EPS) of CN¥2.37 in 2024. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a pretty serious decline to earnings per share numbers as well.

Check out our latest analysis for Anhui Ronds Science & Technology

It'll come as no surprise then, to learn that the analysts have cut their price target 26% to CN¥55.06.

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. The analysts are definitely expecting Anhui Ronds Science & Technology's growth to accelerate, with the forecast 39% annualised growth to the end of 2024 ranking favourably alongside historical growth of 27% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 20% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Anhui Ronds Science & Technology is expected to grow much faster than its 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 Anhui Ronds Science & Technology. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. With a serious cut to next year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Anhui Ronds Science & Technology.

So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with Anhui Ronds Science & Technology, including concerns around earnings quality. Learn more, and discover the 3 other risks we've identified, for 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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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.