Analysts Just Slashed Their Goodwill E-Health Info Co., Ltd. (SHSE:688246) EPS Numbers

Today is shaping up negative for Goodwill E-Health Info Co., Ltd. (SHSE:688246) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the downgrade, the current consensus from Goodwill E-Health Info's four analysts is for revenues of CN¥878m in 2024 which - if met - would reflect a substantial 24% increase on its sales over the past 12 months. Statutory earnings per share are presumed to shoot up 111% to CN¥0.81. Before this latest update, the analysts had been forecasting revenues of CN¥1.1b and earnings per share (EPS) of CN¥1.05 in 2024. It looks like analyst sentiment has declined substantially, with a pretty serious reduction to revenue estimates and a large cut to earnings per share numbers as well.

View our latest analysis for Goodwill E-Health Info

It'll come as no surprise then, to learn that the analysts have cut their price target 11% to CN¥35.50.

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 clear from the latest estimates that Goodwill E-Health Info's rate of growth is expected to accelerate meaningfully, with the forecast 24% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 7.2% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 19% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Goodwill E-Health Info is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Goodwill E-Health Info.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Goodwill E-Health Info analysts - 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 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.