The Consensus EPS Estimates For Guangdong Dongpeng Holdings Co.,Ltd. (SZSE:003012) Just Fell Dramatically

Market forces rained on the parade of Guangdong Dongpeng Holdings Co.,Ltd. (SZSE:003012) shareholders today, when the analysts downgraded their forecasts for this year. Both revenue and earnings per share (EPS) estimates were cut sharply as the analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the downgrade, the consensus from five analysts covering Guangdong Dongpeng HoldingsLtd is for revenues of CN¥7.4b in 2024, implying a discernible 2.7% decline in sales compared to the last 12 months. Statutory earnings per share are supposed to decline 15% to CN¥0.52 in the same period. Before this latest update, the analysts had been forecasting revenues of CN¥8.4b and earnings per share (EPS) of CN¥0.68 in 2024. Indeed, we can see that the analysts are a lot more bearish about Guangdong Dongpeng HoldingsLtd's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for Guangdong Dongpeng HoldingsLtd

The consensus price target fell 20% to CN¥7.73, with the weaker earnings outlook clearly leading analyst valuation estimates.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. One more thing stood out to us about these estimates, and it's the idea that Guangdong Dongpeng HoldingsLtd's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 5.3% to the end of 2024. This tops off a historical decline of 2.5% a year 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 revenue grow 14% per year. So while a broad number of companies are forecast to grow, unfortunately Guangdong Dongpeng HoldingsLtd is expected to see its sales affected worse than other companies in the 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. 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 Guangdong Dongpeng HoldingsLtd.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Guangdong Dongpeng HoldingsLtd going out to 2026, and you can see them free on our platform here.

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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.