One thing we could say about the analysts on OPT Machine Vision Tech Co., Ltd. (SHSE:688686) - 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.

Following the downgrade, the most recent consensus for OPT Machine Vision Tech from its nine analysts is for revenues of CN¥1.4b in 2024 which, if met, would be a huge 31% increase on its sales over the past 12 months. Statutory earnings per share are presumed to jump 61% to CN¥3.30. Prior to this update, the analysts had been forecasting revenues of CN¥1.6b and earnings per share (EPS) of CN¥3.97 in 2024. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a considerable drop in earnings per share numbers as well.

Check out our latest analysis for OPT Machine Vision Tech

It'll come as no surprise then, to learn that the analysts have cut their price target 17% to CN¥118.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of OPT Machine Vision Tech'shistorical trends, as the 24% 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 21% per year. So although OPT Machine Vision Tech is expected to maintain its revenue growth rate, it's only growing at about the rate of 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 OPT Machine Vision Tech. There was also a drop in their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of OPT Machine Vision Tech.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for OPT Machine Vision Tech going out to 2025, 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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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.