Analysts Have Made A Financial Statement On Wuliangye Yibin Co.,Ltd.'s (SZSE:000858) First-Quarter Report

It's been a good week for Wuliangye Yibin Co.,Ltd. (SZSE:000858) shareholders, because the company has just released its latest first-quarter results, and the shares gained 2.3% to CN¥150. Wuliangye YibinLtd reported in line with analyst predictions, delivering revenues of CN¥35b and statutory earnings per share of CN¥3.62, suggesting the business is executing well and in line with its plan. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Wuliangye YibinLtd

After the latest results, the 29 analysts covering Wuliangye YibinLtd are now predicting revenues of CN¥93.0b in 2024. If met, this would reflect a reasonable 6.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 7.1% to CN¥8.75. Before this earnings report, the analysts had been forecasting revenues of CN¥92.5b and earnings per share (EPS) of CN¥8.78 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of CN¥190, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Wuliangye YibinLtd, with the most bullish analyst valuing it at CN¥241 and the most bearish at CN¥150 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Wuliangye YibinLtd's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 9.3% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past 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. Factoring in the forecast slowdown in growth, it seems obvious that Wuliangye YibinLtd is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at CN¥190, with the latest estimates not enough to have an impact on their price targets.

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 Wuliangye YibinLtd going out to 2026, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, 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.