Juewei Food Co., Ltd. (SHSE:603517) Analysts Are More Bearish Than They Used To Be

The latest analyst coverage could presage a bad day for Juewei Food Co., Ltd. (SHSE:603517), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. 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 latest downgrade, the current consensus, from the 14 analysts covering Juewei Food, is for revenues of CN¥6.7b in 2024, which would reflect a small 3.0% reduction in Juewei Food's sales over the past 12 months. Per-share earnings are expected to soar 54% to CN¥0.98. Previously, the analysts had been modelling revenues of CN¥7.6b and earnings per share (EPS) of CN¥1.13 in 2024. Indeed, we can see that the analysts are a lot more bearish about Juewei Food's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for Juewei Food

The consensus price target fell 22% to CN¥16.47, with the weaker earnings outlook clearly leading analyst valuation estimates.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 5.9% by the end of 2024. This indicates a significant reduction from annual growth of 8.6% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 11% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Juewei Food is expected to lag 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 Juewei Food. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Juewei Food's revenues are expected to grow slower than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Juewei Food.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for Juewei Food 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 backed by insiders.

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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.