The ShanDongDenghai Seeds Co.,Ltd (SZSE:002041) Analysts Have Been Trimming Their Sales Forecasts

The latest analyst coverage could presage a bad day for ShanDongDenghai Seeds Co.,Ltd (SZSE:002041), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

After the downgrade, the nine analysts covering ShanDongDenghai SeedsLtd are now predicting revenues of CN¥1.6b in 2024. If met, this would reflect a reasonable 7.2% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing CN¥1.8b of revenue in 2024. It looks like forecasts have become a fair bit less optimistic on ShanDongDenghai SeedsLtd, given the substantial drop in revenue estimates.

View our latest analysis for ShanDongDenghai SeedsLtd

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. It's pretty clear that there is an expectation that ShanDongDenghai SeedsLtd's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 7.2% growth on an annualised basis. This is compared to a historical growth rate of 15% 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 9.4% per year. Factoring in the forecast slowdown in growth, it seems obvious that ShanDongDenghai SeedsLtd is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They're also anticipating slower revenue growth than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on ShanDongDenghai SeedsLtd after today.

Unanswered questions? At least one of ShanDongDenghai SeedsLtd's nine analysts has provided estimates out to 2026, which can be seen for 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.