One thing we could say about the analysts on Ningbo Ronbay New Energy Technology Co., Ltd. (SHSE:688005) - 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) estimates were cut sharply as the analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the latest downgrade, Ningbo Ronbay New Energy Technology's eleven analysts currently expect revenues in 2023 to be CN¥29b, approximately in line with the last 12 months. Per-share earnings are expected to increase 4.6% to CN¥2.27. Previously, the analysts had been modelling revenues of CN¥33b and earnings per share (EPS) of CN¥2.62 in 2023. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a real cut to earnings per share numbers as well.

View our latest analysis for Ningbo Ronbay New Energy Technology

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 1.0% by the end of 2023. This indicates a significant reduction from annual growth of 55% 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 22% per year. It's pretty clear that Ningbo Ronbay New Energy Technology's revenues are expected to perform substantially worse than 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 Technology. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. After a cut like that, investors could be forgiven for thinking analysts are a lot more bearish on Ningbo Ronbay New Energy Technology, and a few readers might choose to steer clear of the stock.

That said, the analysts might have good reason to be negative on Ningbo Ronbay New Energy Technology, given dilutive stock issuance over the past year. For more information, you can click here to discover this and the 3 other concerns we've identified.

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.