Shandong Yisheng Livestock & Poultry Breeding Co., Ltd. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Investors in Shandong Yisheng Livestock & Poultry Breeding Co., Ltd. (SZSE:002458) had a good week, as its shares rose 6.6% to close at CN¥9.67 following the release of its full-year results. It looks like a pretty bad result, all things considered. Although revenues of CN¥3.1b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 21% to hit CN¥0.46 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following the latest results, Shandong Yisheng Livestock & Poultry Breeding's six analysts are now forecasting revenues of CN¥3.46b in 2025. This would be a solid 10% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 20% to CN¥0.55. Before this earnings report, the analysts had been forecasting revenues of CN¥3.39b and earnings per share (EPS) of CN¥0.65 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a real cut to EPS estimates.

See our latest analysis for Shandong Yisheng Livestock & Poultry Breeding

The consensus price target held steady at CN¥11.63, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Shandong Yisheng Livestock & Poultry Breeding, with the most bullish analyst valuing it at CN¥12.25 and the most bearish at CN¥11.05 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Shandong Yisheng Livestock & Poultry Breeding is an easy business to forecast or the the analysts are all using similar assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Shandong Yisheng Livestock & Poultry Breeding's growth to accelerate, with the forecast 10% annualised growth to the end of 2025 ranking favourably alongside historical growth of 2.3% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 9.3% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Shandong Yisheng Livestock & Poultry Breeding is expected to grow at about the same rate as the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Shandong Yisheng Livestock & Poultry Breeding. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that 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 2027, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for Shandong Yisheng Livestock & Poultry Breeding you should know about.

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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.