The analysts covering Luoyang Jianlong Micro-nano New Material Co., Ltd (SHSE:688357) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.

After the downgrade, the five analysts covering Luoyang Jianlong Micro-nano New Material are now predicting revenues of CN¥1.1b in 2024. If met, this would reflect a major 34% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to leap 50% to CN¥2.23. Previously, the analysts had been modelling revenues of CN¥1.4b and earnings per share (EPS) of CN¥3.41 in 2024. Indeed, we can see that the analysts are a lot more bearish about Luoyang Jianlong Micro-nano New Material's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

The consensus price target fell 18% to CN¥54.50, with the weaker earnings outlook clearly leading analyst valuation estimates.

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. It's clear from the latest estimates that Luoyang Jianlong Micro-nano New Material's rate of growth is expected to accelerate meaningfully, with the forecast 34% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 22% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 16% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Luoyang Jianlong Micro-nano New Material is expected to grow much faster than its 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. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

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 Luoyang Jianlong Micro-nano New Material 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.

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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.