The Consensus EPS Estimates For Suzhou Weizhixiang Food Co., Ltd. (SHSE:605089) Just Fell Dramatically

One thing we could say about the analysts on Suzhou Weizhixiang Food Co., Ltd. (SHSE:605089) - 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) forecasts went under the knife, suggesting analysts have soured majorly on the business.

Following the downgrade, the current consensus from Suzhou Weizhixiang Food's six analysts is for revenues of CN¥811m in 2024 which - if met - would reflect a modest 6.3% increase on its sales over the past 12 months. Per-share earnings are expected to climb 12% to CN¥0.96. Previously, the analysts had been modelling revenues of CN¥1.0b and earnings per share (EPS) of CN¥1.38 in 2024. Indeed, we can see that the analysts are a lot more bearish about Suzhou Weizhixiang Food's prospects, administering a sizeable cut to revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for Suzhou Weizhixiang Food

The consensus price target fell 14% to CN¥32.97, 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. It's clear from the latest estimates that Suzhou Weizhixiang Food's rate of growth is expected to accelerate meaningfully, with the forecast 8.5% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 4.7% p.a. over the past three years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 9.2% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Suzhou Weizhixiang Food is expected to grow at about the same rate as 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. Lamentably, they also downgraded their sales forecasts, but the business is still expected to grow at roughly the same rate as the market itself. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Suzhou Weizhixiang Food.

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 Suzhou Weizhixiang Food going out to 2026, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks 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.