Need To Know: Analysts Just Made A Substantial Cut To Their Anhui Wanwei Updated High-Tech Material Industry Co.,Ltd (SHSE:600063) Estimates

Today is shaping up negative for Anhui Wanwei Updated High-Tech Material Industry Co.,Ltd (SHSE:600063) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.

After the downgrade, the four analysts covering Anhui Wanwei Updated High-Tech Material IndustryLtd are now predicting revenues of CN¥9.0b in 2024. If met, this would reflect a decent 9.4% improvement in sales compared to the last 12 months. Per-share earnings are expected to jump 108% to CN¥0.33. Prior to this update, the analysts had been forecasting revenues of CN¥10b and earnings per share (EPS) of CN¥0.40 in 2024. Indeed, we can see that the analysts are a lot more bearish about Anhui Wanwei Updated High-Tech Material IndustryLtd's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for Anhui Wanwei Updated High-Tech Material IndustryLtd

The consensus price target fell 15% to CN¥4.62, with the weaker earnings outlook clearly leading analyst valuation estimates.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Anhui Wanwei Updated High-Tech Material IndustryLtd'shistorical trends, as the 9.4% annualised revenue growth to the end of 2024 is roughly in line with the 11% annual revenue growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 16% per year. So although Anhui Wanwei Updated High-Tech Material IndustryLtd is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

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 Anhui Wanwei Updated High-Tech Material IndustryLtd. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Anhui Wanwei Updated High-Tech Material IndustryLtd.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Anhui Wanwei Updated High-Tech Material IndustryLtd 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.