Canny Elevator Co., Ltd. (SZSE:002367) Analysts Just Trimmed Their Revenue Forecasts By 12%

One thing we could say about the analysts on Canny Elevator Co., Ltd. (SZSE:002367) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the downgrade, the consensus from dual analysts covering Canny Elevator is for revenues of CN¥4.0b in 2024, implying an uncomfortable 14% decline in sales compared to the last 12 months. Statutory earnings per share are anticipated to shrink 4.1% to CN¥0.38 in the same period. Before this latest update, the analysts had been forecasting revenues of CN¥4.5b and earnings per share (EPS) of CN¥0.39 in 2024. Indeed, we can see that analyst sentiment has declined measurably after the new consensus came out, with a substantial drop in revenue estimates and a minor downgrade to EPS estimates to boot.

View our latest analysis for Canny Elevator

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Canny Elevator's past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with a forecast 26% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 7.5% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 16% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Canny Elevator is expected to lag the wider 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 Canny Elevator. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Canny Elevator going forwards.

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

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