The analysts covering Canny Elevator Co., Ltd. (SZSE:002367) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

Following the downgrade, the consensus from twin analysts covering Canny Elevator is for revenues of CN¥4.5b in 2024, implying a perceptible 7.6% decline in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of CN¥5.1b in 2024. The consensus view seems to have become more pessimistic on Canny Elevator, noting the measurable cut to revenue estimates in this update.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with a forecast 7.6% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 9.2% 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 17% per year. It's pretty clear that Canny Elevator's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Canny Elevator this year. They're also anticipating slower revenue growth than the wider market. After a cut like that, investors could be forgiven for thinking analysts are a lot more bearish on Canny Elevator, and a few readers might choose to steer clear of the stock.

Of course, this isn't the full story. At least one of Canny Elevator's twin analysts has provided estimates out to 2026, which can be seen for 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 backed by insiders.

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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.