One thing we could say about the covering analyst on Zhejiang Jinggong Integration Technology Co., Ltd. (SZSE:002006) - 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) forecasts went under the knife, suggesting the analyst has soured majorly on the business.

After this downgrade, Zhejiang Jinggong Integration Technology's single analyst is now forecasting revenues of CN¥2.6b in 2024. This would be a major 53% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to jump 63% to CN¥0.68. Prior to this update, the analyst had been forecasting revenues of CN¥3.6b and earnings per share (EPS) of CN¥0.82 in 2024. It looks like analyst sentiment has declined substantially, with a sizeable cut to revenue estimates and a considerable drop in earnings per share numbers as well.

It'll come as no surprise then, to learn that the analyst has cut their price target 8.1% to CN¥17.00.

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. It's clear from the latest estimates that Zhejiang Jinggong Integration Technology's rate of growth is expected to accelerate meaningfully, with the forecast 134% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 18% 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. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Zhejiang Jinggong Integration Technology to grow faster than the wider industry.

The Bottom Line

The biggest issue in the new estimates is that the analyst has reduced their earnings per share estimates, suggesting business headwinds lay ahead for Zhejiang Jinggong Integration Technology. Unfortunately, the analyst also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. After such a stark change in sentiment from the analyst, we'd understand if readers now felt a bit wary of Zhejiang Jinggong Integration Technology.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Zhejiang Jinggong Integration Technology going out as far as 2026, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.