Some Beijing Oriental Yuhong Waterproof Technology Co., Ltd. (SZSE:002271) Analysts Just Made A Major Cut To Next Year's Estimates

The analysts covering Beijing Oriental Yuhong Waterproof Technology Co., Ltd. (SZSE:002271) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.

Following the downgrade, the current consensus from Beijing Oriental Yuhong Waterproof Technology's 19 analysts is for revenues of CN¥37b in 2024 which - if met - would reflect a notable 12% increase on its sales over the past 12 months. Per-share earnings are expected to soar 30% to CN¥1.19. Prior to this update, the analysts had been forecasting revenues of CN¥41b and earnings per share (EPS) of CN¥1.67 in 2024. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a large cut to earnings per share numbers as well.

View our latest analysis for Beijing Oriental Yuhong Waterproof Technology

The consensus price target fell 28% to CN¥22.11, with the weaker earnings outlook clearly leading analyst valuation estimates.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 17% growth on an annualised basis. That is in line with its 16% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.1% annually. So it's pretty clear that Beijing Oriental Yuhong Waterproof Technology is forecast to grow substantially faster than its 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. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Beijing Oriental Yuhong Waterproof Technology.

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 Beijing Oriental Yuhong Waterproof Technology 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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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.