Bearish: Analysts Just Cut Their Shandong Yisheng Livestock & Poultry Breeding Co., Ltd. (SZSE:002458) Revenue and EPS estimates

The analysts covering Shandong Yisheng Livestock & Poultry Breeding Co., Ltd. (SZSE:002458) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.

After this downgrade, Shandong Yisheng Livestock & Poultry Breeding's nine analysts are now forecasting revenues of CN¥3.7b in 2024. This would be a notable 15% improvement in sales compared to the last 12 months. Per-share earnings are expected to soar 89% to CN¥0.92. Previously, the analysts had been modelling revenues of CN¥4.2b and earnings per share (EPS) of CN¥1.32 in 2024. Indeed, we can see that the analysts are a lot more bearish about Shandong Yisheng Livestock & Poultry Breeding's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Shandong Yisheng Livestock & Poultry Breeding

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Shandong Yisheng Livestock & Poultry Breeding's rate of growth is expected to accelerate meaningfully, with the forecast 15% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 2.2% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. Shandong Yisheng Livestock & Poultry Breeding is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Shandong Yisheng Livestock & Poultry Breeding. 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 a cut like that, investors could be forgiven for thinking analysts are a lot more bearish on Shandong Yisheng Livestock & Poultry Breeding, and a few readers might choose to steer clear of the stock.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Shandong Yisheng Livestock & Poultry Breeding 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.