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Niu Technologies Analysts Are Cutting Their Estimates: Here's What You Need To Know

Simply Wall St

The quarterly results for Niu Technologies (NASDAQ:NIU) were released last week, making it a good time to revisit its performance. Revenues were a bright spot, with CN¥654m in sales arriving 3.1% ahead of expectations, although earnings didn't fare nearly so well, recording a loss of CN¥10.60, some 3.5% below consensus predictions. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings consensus estimates to see what could be in store for next year.

Check out our latest analysis for Niu Technologies

NasdaqGM:NIU Past and Future Earnings, November 27th 2019
NasdaqGM:NIU Past and Future Earnings, November 27th 2019

Taking into account the latest results, the current consensus from Niu Technologies's two analysts is for revenues of CN¥3.00b in 2020, which would reflect a substantial 52% increase on its sales over the past 12 months. Earnings per share are expected to soar 202% to CN¥4.07. In the lead-up to this report, analysts had been modelling revenues of CN¥3.34b and earnings per share (EPS) of CN¥5.17 in 2020. Indeed, we can see that analysts are a lot more bearish about Niu Technologies's prospects following the latest results, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

The consensus price target fell 12% to CN¥89.59, with the weaker earnings outlook clearly leading analyst valuation estimates.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. Next year brings more of the same, according to analysts, with revenue forecast to grow 52%, in line with its 51% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 8.6% per year. So it's pretty clear that Niu Technologies is forecast to grow substantially faster than its market.

The Bottom Line

The biggest highlight of the new consensus is that analysts have reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Niu Technologies. Unfortunately analysts also downgraded their revenue estimates, although industry data suggests that Niu Technologies's revenues are expected to grow faster than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by the latest results, leading to a lower estimate of Niu Technologies's future valuation.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for Niu Technologies going out as far as 2021, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.