The Consensus EPS Estimates For Yongan Futures Co.,Ltd. (SHSE:600927) Just Fell Dramatically

Today is shaping up negative for Yongan Futures Co.,Ltd. (SHSE:600927) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

After the downgrade, the five analysts covering Yongan FuturesLtd are now predicting revenues of CN¥26b in 2024. If met, this would reflect a notable 15% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to leap 31% to CN¥0.54. Previously, the analysts had been modelling revenues of CN¥30b and earnings per share (EPS) of CN¥0.60 in 2024. Indeed, we can see that the analysts are a lot more bearish about Yongan FuturesLtd's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for Yongan FuturesLtd

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Yongan FuturesLtd's growth to accelerate, with the forecast 15% annualised growth to the end of 2024 ranking favourably alongside historical growth of 7.0% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 11% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Yongan FuturesLtd is expected to grow much faster than its 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 Yongan FuturesLtd. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. After a cut like that, investors could be forgiven for thinking analysts are a lot more bearish on Yongan FuturesLtd, and a few readers might choose to steer clear of the stock.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Yongan FuturesLtd going out to 2026, 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 that insiders are buying.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.