One thing we could say about the analysts on Suzhou Everbright Photonics Co., Ltd. (SHSE:688048) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. 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 Suzhou Everbright Photonics' five analysts is for revenues of CN¥331m in 2024 which - if met - would reflect a major 20% increase on its sales over the past 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 52% to CN¥0.34. Before this latest update, the analysts had been forecasting revenues of CN¥395m and earnings per share (EPS) of CN¥0.23 in 2024. There looks to have been a major change in sentiment regarding Suzhou Everbright Photonics' prospects, with a substantial drop in revenues and the analysts now forecasting a loss instead of a profit.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. For example, we noticed that Suzhou Everbright Photonics' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 45% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 15% a year over the past year. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 23% annually. Not only are Suzhou Everbright Photonics' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The biggest low-light for us was that the forecasts for Suzhou Everbright Photonics dropped from profits to a loss this year. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. Given the serious cut to this year's outlook, it's clear that analysts have turned more bearish on Suzhou Everbright Photonics, and we wouldn't blame shareholders for feeling a little more cautious themselves.

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 Suzhou Everbright Photonics 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.

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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.