News Flash: 2 Analysts Think Jiangsu Wujin Stainless Steel Pipe Group CO.,LTD. (SHSE:603878) Earnings Are Under Threat

The latest analyst coverage could presage a bad day for Jiangsu Wujin Stainless Steel Pipe Group CO.,LTD. (SHSE:603878), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.

Following the downgrade, the latest consensus from Jiangsu Wujin Stainless Steel Pipe GroupLTD's twin analysts is for revenues of CN¥3.5b in 2024, which would reflect a decent 9.2% improvement in sales compared to the last 12 months. Per-share earnings are expected to step up 16% to CN¥0.64. Previously, the analysts had been modelling revenues of CN¥4.1b and earnings per share (EPS) of CN¥0.81 in 2024. Indeed, we can see that the analysts are a lot more bearish about Jiangsu Wujin Stainless Steel Pipe GroupLTD's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Jiangsu Wujin Stainless Steel Pipe GroupLTD

It'll come as no surprise then, to learn that the analysts have cut their price target 35% to CN¥6.70.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Jiangsu Wujin Stainless Steel Pipe GroupLTD'shistorical trends, as the 9.2% annualised revenue growth to the end of 2024 is roughly in line with the 9.7% annual revenue growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 9.5% per year. It's clear that while Jiangsu Wujin Stainless Steel Pipe GroupLTD's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

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. Lamentably, they also downgraded their sales forecasts, but the business is still expected to grow at roughly the same rate as the market itself. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Jiangsu Wujin Stainless Steel Pipe GroupLTD going out as far as 2026, and you can see them free on our platform here.

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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.