Growth Investors: Industry Analysts Just Upgraded Their Yuan Long Ping High-Tech Agriculture Co., Ltd. (SZSE:000998) Revenue Forecasts By 18%

Yuan Long Ping High-Tech Agriculture Co., Ltd. (SZSE:000998) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts have sharply increased their revenue numbers, with a view that Yuan Long Ping High-Tech Agriculture will make substantially more sales than they'd previously expected.

Following the upgrade, the consensus from eight analysts covering Yuan Long Ping High-Tech Agriculture is for revenues of CN¥8.5b in 2024, implying a definite 11% decline in sales compared to the last 12 months. Per-share earnings are expected to soar 321% to CN¥0.40. Before this latest update, the analysts had been forecasting revenues of CN¥7.2b and earnings per share (EPS) of CN¥0.40 in 2024. It seems analyst sentiment has certainly become more bullish on revenues, even though they haven't changed their view on earnings per share.

See our latest analysis for Yuan Long Ping High-Tech Agriculture

As a result, it might come as a surprise that the consensus price target has been cut 13% to CN¥16.70, which could suggest that these earnings are considered less valuable by the market than previously.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 11% by the end of 2024. This indicates a significant reduction from annual growth of 18% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 12% annually for the foreseeable future. It's pretty clear that Yuan Long Ping High-Tech Agriculture's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Yuan Long Ping High-Tech Agriculture.

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 Yuan Long Ping High-Tech Agriculture 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 upgrading 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.