The latest analyst coverage could presage a bad day for JinkoSolar Holding Co., Ltd. (NYSE:JKS), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.

After the downgrade, the consensus from JinkoSolar Holding's six analysts is for revenues of CN¥82b in 2025, which would reflect a considerable 11% decline in sales compared to the last year of performance. Following this this downgrade, earnings are now expected to tip over into loss-making territory, with the analysts forecasting losses of CN¥21.22 per share in 2025. Prior to this update, the analysts had been forecasting revenues of CN¥105b and earnings per share (EPS) of CN¥14.49 in 2025. There looks to have been a major change in sentiment regarding JinkoSolar Holding's prospects, with a sizeable cut to revenues and the analysts now forecasting a loss instead of a profit.

See our latest analysis for JinkoSolar Holding

The consensus price target fell 5.9% to US$33.02, implicitly signalling that lower earnings per share are a leading indicator for JinkoSolar Holding's valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the JinkoSolar Holding's past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 11% by the end of 2025. This indicates a significant reduction from annual growth of 30% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 16% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - JinkoSolar Holding is expected to lag the wider industry.

The Bottom Line

The biggest low-light for us was that the forecasts for JinkoSolar Holding dropped from profits to a loss this year. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that JinkoSolar Holding's revenues are expected to grow slower than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple JinkoSolar Holding analysts - going out to 2027, 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.