Yunnan Tin Company Limited (SZSE:000960) Analysts Just Slashed This Year's Revenue Estimates By 22%

Market forces rained on the parade of Yunnan Tin Company Limited (SZSE:000960) shareholders today, when the analysts downgraded their forecasts for this year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the latest downgrade, the current consensus, from the ten analysts covering Yunnan Tin, is for revenues of CN¥39b in 2024, which would reflect a discernible 6.8% reduction in Yunnan Tin's sales over the past 12 months. Per-share earnings are expected to soar 52% to CN¥1.30. Prior to this update, the analysts had been forecasting revenues of CN¥51b and earnings per share (EPS) of CN¥1.35 in 2024. It looks like analyst sentiment has fallen somewhat in this update, with a sizeable cut to revenue estimates and a small dip in earnings per share numbers as well.

See our latest analysis for Yunnan Tin

What's most unexpected is that the consensus price target rose 11% to CN¥19.96, strongly implying the downgrade to forecasts is not expected to be more than a temporary blip.

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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 6.8% by the end of 2024. This indicates a significant reduction from annual growth of 3.6% 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 10.0% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Yunnan Tin is expected to lag 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. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Yunnan Tin after today.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Yunnan Tin analysts - 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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