The latest analyst coverage could presage a bad day for Zhejiang Entive Smart Kitchen Appliance Co., Ltd. (SZSE:300911), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.

Following the downgrade, the latest consensus from Zhejiang Entive Smart Kitchen Appliance's nine analysts is for revenues of CN¥1.3b in 2024, which would reflect a satisfactory 3.5% improvement in sales compared to the last 12 months. Per-share earnings are expected to grow 12% to CN¥1.87. Before this latest update, the analysts had been forecasting revenues of CN¥1.5b and earnings per share (EPS) of CN¥2.44 in 2024. Indeed, we can see that the analysts are a lot more bearish about Zhejiang Entive Smart Kitchen Appliance's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

It'll come as no surprise then, to learn that the analysts have cut their price target 6.4% to CN¥36.36.

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 pretty clear that there is an expectation that Zhejiang Entive Smart Kitchen Appliance's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 3.5% growth on an annualised basis. This is compared to a historical growth rate of 19% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.6% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Zhejiang Entive Smart Kitchen Appliance.

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. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Zhejiang Entive Smart Kitchen Appliance's revenues are expected to grow slower 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.

As you can see, the analysts clearly aren't bullish, and there might be good reason for that. We've identified some potential issues with Zhejiang Entive Smart Kitchen Appliance's financials, such as concerns around earnings quality. Learn more, and discover the 1 other risk we've identified, for free on our platform here.

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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.