News Flash: 3 Analysts Think Jiahe Foods Industry Co., Ltd. (SHSE:605300) Earnings Are Under Threat

One thing we could say about the analysts on Jiahe Foods Industry Co., Ltd. (SHSE:605300) - 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.

Following the downgrade, the current consensus from Jiahe Foods Industry's three analysts is for revenues of CN¥3.1b in 2024 which - if met - would reflect a modest 7.4% increase on its sales over the past 12 months. Statutory earnings per share are supposed to reduce 4.6% to CN¥0.61 in the same period. Before this latest update, the analysts had been forecasting revenues of CN¥3.5b and earnings per share (EPS) of CN¥0.84 in 2024. Indeed, we can see that the analysts are a lot more bearish about Jiahe Foods Industry's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Jiahe Foods Industry

It'll come as no surprise then, to learn that the analysts have cut their price target 32% to CN¥16.25.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Jiahe Foods Industry's revenue growth is expected to slow, with the forecast 7.4% annualised growth rate until the end of 2024 being well below the historical 11% 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 13% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Jiahe Foods 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 Jiahe Foods Industry'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 Jiahe Foods Industry.

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 Jiahe Foods Industry 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.