Analysts Just Slashed Their Ping An Bank Co., Ltd. (SZSE:000001) EPS Numbers

The latest analyst coverage could presage a bad day for Ping An Bank Co., Ltd. (SZSE:000001), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.

After the downgrade, the 25 analysts covering Ping An Bank are now predicting revenues of CN¥159b in 2024. If met, this would reflect a sizeable 46% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to be CN¥2.38, roughly flat on the last 12 months. Previously, the analysts had been modelling revenues of CN¥177b and earnings per share (EPS) of CN¥2.68 in 2024. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a real cut to earnings per share numbers as well.

View our latest analysis for Ping An Bank

Despite the cuts to forecast earnings, there was no real change to the CN¥12.48 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.

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. The analysts are definitely expecting Ping An Bank's growth to accelerate, with the forecast 46% annualised growth to the end of 2024 ranking favourably alongside historical growth of 10% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Ping An Bank is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. The lack of change in the price target is puzzling in light of the downgrade but, with a serious decline expected this year, we wouldn't be surprised if investors were a bit wary of Ping An Bank.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Ping An Bank analysts - 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 that insiders are buying.

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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.