What You Need To Know About The Qingdao Yunlu Advanced Materials Technology Co., Ltd. (SHSE:688190) Analyst Downgrade Today

One thing we could say about the analysts on Qingdao Yunlu Advanced Materials Technology Co., Ltd. (SHSE:688190) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

After this downgrade, Qingdao Yunlu Advanced Materials Technology's twin analysts are now forecasting revenues of CN¥2.0b in 2024. This would be a meaningful 19% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to soar 27% to CN¥3.18. Before this latest update, the analysts had been forecasting revenues of CN¥2.2b and earnings per share (EPS) of CN¥3.52 in 2024. Indeed, we can see that analyst sentiment has declined measurably after the new consensus came out, with a measurable cut to revenue estimates and a small dip in EPS estimates to boot.

Check out our latest analysis for Qingdao Yunlu Advanced Materials Technology

Analysts made no major changes to their price target of CN¥95.00, suggesting the downgrades are not expected to have a long-term impact on Qingdao Yunlu Advanced Materials Technology's valuation.

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 pretty clear that there is an expectation that Qingdao Yunlu Advanced Materials Technology's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 19% growth on an annualised basis. This is compared to a historical growth rate of 43% over the past year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 10% annually. So it's pretty clear that, while Qingdao Yunlu Advanced Materials Technology's revenue growth is expected to slow, it's still expected to grow faster than 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. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Qingdao Yunlu Advanced Materials Technology after today.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Qingdao Yunlu Advanced Materials Technology going out as far as 2026, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.