Bearish: Analysts Just Cut Their Leshan Giantstar Farming&Husbandry Corporation Limited (SHSE:603477) Revenue and EPS estimates

One thing we could say about the analysts on Leshan Giantstar Farming&Husbandry Corporation Limited (SHSE:603477) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. 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. Surprisingly the share price has been buoyant, rising 10% to CN¥20.78 in the past 7 days. With such a sharp increase, it seems brokers may have seen something that is not yet being priced in by the wider market.

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After this downgrade, Leshan Giantstar Farming&Husbandry's four analysts are now forecasting revenues of CN¥7.6b in 2025. This would be a huge 24% improvement in sales compared to the last 12 months. Statutory earnings per share are forecast to be CN¥1.00, approximately in line with the last 12 months. Previously, the analysts had been modelling revenues of CN¥9.3b and earnings per share (EPS) of CN¥3.15 in 2025. Indeed, we can see that the analysts are a lot more bearish about Leshan Giantstar Farming&Husbandry's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for Leshan Giantstar Farming&Husbandry

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Leshan Giantstar Farming&Husbandry's past performance and to peers in the same industry. We would highlight that Leshan Giantstar Farming&Husbandry's revenue growth is expected to slow, with the forecast 24% annualised growth rate until the end of 2025 being well below the historical 32% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.5% annually. Even after the forecast slowdown in growth, it seems obvious that Leshan Giantstar Farming&Husbandry is also expected to grow faster than the wider 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 Leshan Giantstar Farming&Husbandry. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. After a cut like that, investors could be forgiven for thinking analysts are a lot more bearish on Leshan Giantstar Farming&Husbandry, and a few readers might choose to steer clear of the stock.

Unfortunately, the earnings downgrade - if accurate - may also place pressure on Leshan Giantstar Farming&Husbandry's mountain of debt, which could lead to some belt tightening for shareholders. See why we're concerned about Leshan Giantstar Farming&Husbandry's balance sheet by visiting our risks dashboard for free on our platform here.

We also provide an overview of the Leshan Giantstar Farming&Husbandry Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.