Today is shaping up negative for Jade Bird Fire Co., Ltd. (SZSE:002960) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.

After the downgrade, the three analysts covering Jade Bird Fire are now predicting revenues of CN¥5.8b in 2024. If met, this would reflect a notable 19% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to expand 19% to CN¥1.03. Previously, the analysts had been modelling revenues of CN¥6.5b and earnings per share (EPS) of CN¥1.17 in 2024. Indeed, we can see that the analysts are a lot more bearish about Jade Bird Fire's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

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 would highlight that Jade Bird Fire's revenue growth is expected to slow, with the forecast 19% annualised growth rate until the end of 2024 being well below the historical 24% p.a. growth over the last five years. Compare this to the 393 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 18% per year. So it's pretty clear that, while Jade Bird Fire's revenue growth is expected to slow, it's expected to grow roughly in line with the 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. 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 a cut like that, investors could be forgiven for thinking analysts are a lot more bearish on Jade Bird Fire, and a few readers might choose to steer clear of the stock.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Jade Bird Fire 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.