What Does The Future Hold For Qinghai Salt Lake Industry Co.,Ltd (SZSE:000792)? These Analysts Have Been Cutting Their Estimates

One thing we could say about the analysts on Qinghai Salt Lake Industry Co.,Ltd (SZSE:000792) - 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 the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

Following the latest downgrade, the current consensus, from the nine analysts covering Qinghai Salt Lake IndustryLtd, is for revenues of CN¥17b in 2024, which would reflect a considerable 16% reduction in Qinghai Salt Lake IndustryLtd's sales over the past 12 months. Per-share earnings are expected to accumulate 2.4% to CN¥1.26. Before this latest update, the analysts had been forecasting revenues of CN¥20b and earnings per share (EPS) of CN¥1.33 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 minor downgrade to EPS estimates to boot.

Check out our latest analysis for Qinghai Salt Lake IndustryLtd

Analysts made no major changes to their price target of CN¥19.97, suggesting the downgrades are not expected to have a long-term impact on Qinghai Salt Lake IndustryLtd's valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with a forecast 20% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 7.7% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 15% annually for the foreseeable future. It's pretty clear that Qinghai Salt Lake IndustryLtd's revenues are expected to perform substantially 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. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Qinghai Salt Lake IndustryLtd's revenues are expected to grow slower than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Qinghai Salt Lake IndustryLtd after today.

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 Qinghai Salt Lake IndustryLtd going out to 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 backed by insiders.

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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.

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