Analysts Just Slashed Their Bright Dairy & Food Co.,Ltd (SHSE:600597) EPS Numbers

Today is shaping up negative for Bright Dairy & Food Co.,Ltd (SHSE:600597) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.

Following the latest downgrade, the five analysts covering Bright Dairy & FoodLtd provided consensus estimates of CN¥27b revenue in 2024, which would reflect a discernible 2.9% decline on its sales over the past 12 months. Statutory earnings per share are presumed to leap 110% to CN¥0.48. Prior to this update, the analysts had been forecasting revenues of CN¥32b and earnings per share (EPS) of CN¥0.54 in 2024. Indeed, we can see that the analysts are a lot more bearish about Bright Dairy & FoodLtd's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Bright Dairy & FoodLtd

It'll come as no surprise then, to learn that the analysts have cut their price target 8.2% to CN¥10.10.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 3.8% by the end of 2024. This indicates a significant reduction from annual growth of 7.2% 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 9.2% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Bright Dairy & FoodLtd is expected to lag the wider 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, and industry data suggests that Bright Dairy & FoodLtd's revenues are expected to grow 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 Bright Dairy & FoodLtd.

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 Bright Dairy & FoodLtd 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.

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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.