News Flash: 7 Analysts Think Lepu Medical Technology (Beijing) Co., Ltd. (SZSE:300003) Earnings Are Under Threat

Market forces rained on the parade of Lepu Medical Technology (Beijing) Co., Ltd. (SZSE:300003) shareholders today, when the analysts downgraded their forecasts for this year. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following this downgrade, Lepu Medical Technology (Beijing)'s seven analysts are forecasting 2024 revenues to be CN¥7.1b, approximately in line with the last 12 months. Per-share earnings are expected to bounce 36% to CN¥0.73. Prior to this update, the analysts had been forecasting revenues of CN¥8.9b and earnings per share (EPS) of CN¥1.07 in 2024. Indeed, we can see that the analysts are a lot more bearish about Lepu Medical Technology (Beijing)'s prospects, administering a sizeable cut to revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for Lepu Medical Technology (Beijing)

It'll come as no surprise then, to learn that the analysts have cut their price target 16% to CN¥16.99.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Lepu Medical Technology (Beijing)'s revenue growth is expected to slow, with the forecast 0.7% annualised growth rate until the end of 2024 being well below the historical 2.2% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 19% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Lepu Medical Technology (Beijing).

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 Lepu Medical Technology (Beijing). 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 Lepu Medical Technology (Beijing).

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Lepu Medical Technology (Beijing) 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.

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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.