Shandong Yisheng Livestock & Poultry Breeding Co., Ltd. (SZSE:002458) Just Reported And Analysts Have Been Lifting Their Price Targets

Last week, you might have seen that Shandong Yisheng Livestock & Poultry Breeding Co., Ltd. (SZSE:002458) released its first-quarter result to the market. The early response was not positive, with shares down 8.2% to CN¥9.35 in the past week. Shandong Yisheng Livestock & Poultry Breeding reported in line with analyst predictions, delivering revenues of CN¥687m and statutory earnings per share of CN¥0.54, suggesting the business is executing well and in line with its plan. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Shandong Yisheng Livestock & Poultry Breeding

Taking into account the latest results, the current consensus from Shandong Yisheng Livestock & Poultry Breeding's nine analysts is for revenues of CN¥3.62b in 2024. This would reflect a substantial 21% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 160% to CN¥0.79. In the lead-up to this report, the analysts had been modelling revenues of CN¥3.55b and earnings per share (EPS) of CN¥0.88 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

Despite cutting their earnings forecasts,the analysts have lifted their price target 5.6% to CN¥15.77, suggesting that these impacts are not expected to weigh on the stock's value in the long term. 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. The most optimistic Shandong Yisheng Livestock & Poultry Breeding analyst has a price target of CN¥20.16 per share, while the most pessimistic values it at CN¥12.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Shandong Yisheng Livestock & Poultry Breeding shareholders.

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 28% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 1.1% 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. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Shandong Yisheng Livestock & Poultry Breeding to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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. We have forecasts for Shandong Yisheng Livestock & Poultry Breeding going out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for Shandong Yisheng Livestock & Poultry Breeding that you need to be mindful of.

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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.