Jiangxi Wannianqing Cement Co., Ltd. (SZSE:000789) Analysts Are More Bearish Than They Used To Be

Today is shaping up negative for Jiangxi Wannianqing Cement Co., Ltd. (SZSE:000789) 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.

Following the latest downgrade, the twin analysts covering Jiangxi Wannianqing Cement provided consensus estimates of CN¥7.9b revenue in 2024, which would reflect a noticeable 3.0% decline on its sales over the past 12 months. Per-share earnings are expected to surge 33% to CN¥0.38. Before this latest update, the analysts had been forecasting revenues of CN¥12b and earnings per share (EPS) of CN¥1.19 in 2024. Indeed, we can see that the analysts are a lot more bearish about Jiangxi Wannianqing Cement's prospects, administering a pretty serious reduction to revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Jiangxi Wannianqing Cement

The consensus price target fell 18% to CN¥7.17, with the weaker earnings outlook clearly leading analyst valuation estimates.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Jiangxi Wannianqing Cement's past performance and to peers in the same industry. One more thing stood out to us about these estimates, and it's the idea that Jiangxi Wannianqing Cement's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 3.0% to the end of 2024. This tops off a historical decline of 0.8% a year 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 revenue grow 9.4% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect Jiangxi Wannianqing Cement to suffer worse than the wider 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. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. 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 Jiangxi Wannianqing Cement 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.