The analysts covering TianJin 712 Communication & Broadcasting Co., Ltd. (SHSE:603712) 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.

Following the downgrade, the current consensus from TianJin 712 Communication & Broadcasting's three analysts is for revenues of CN¥4.3b in 2024 which - if met - would reflect a substantial 40% increase on its sales over the past 12 months. Statutory earnings per share are presumed to leap 131% to CN¥0.90. Before this latest update, the analysts had been forecasting revenues of CN¥4.9b and earnings per share (EPS) of CN¥1.02 in 2024. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a considerable drop in earnings per share numbers as well.

It'll come as no surprise then, to learn that the analysts have cut their price target 17% to CN¥22.48.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that TianJin 712 Communication & Broadcasting's rate of growth is expected to accelerate meaningfully, with the forecast 40% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 13% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 21% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that TianJin 712 Communication & Broadcasting is expected to grow much faster than its industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for TianJin 712 Communication & Broadcasting. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of TianJin 712 Communication & Broadcasting.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for TianJin 712 Communication & Broadcasting going out to 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.

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.