One thing we could say about the analysts on Opple Lighting Co.,LTD (SHSE:603515) - 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) estimates were cut sharply as the analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following this downgrade, Opple LightingLTD's five analysts are forecasting 2024 revenues to be CN¥7.6b, approximately in line with the last 12 months. Statutory earnings per share are anticipated to decrease 2.5% to CN¥1.21 in the same period. Prior to this update, the analysts had been forecasting revenues of CN¥8.6b and earnings per share (EPS) of CN¥1.38 in 2024. Indeed, we can see that the analysts are a lot more bearish about Opple LightingLTD'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 17% to CN¥18.47.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would also point out that the forecast 1.5% annualised revenue decline to the end of 2024 is roughly in line with the historical trend, which saw revenues shrink 1.6% annually over the past five years By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 14% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect Opple LightingLTD to suffer worse than the wider 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. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower 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 Opple LightingLTD.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Opple LightingLTD analysts - 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 backed by insiders.

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.