Need To Know: This Analyst Just Made A Substantial Cut To Their Sichuan Anning Iron and Titanium Co.,Ltd. (SZSE:002978) Estimates

Today is shaping up negative for Sichuan Anning Iron and Titanium Co.,Ltd. (SZSE:002978) shareholders, with the covering analyst delivering a substantial negative revision to this year's forecasts. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analyst has soured majorly on the business.

Following the latest downgrade, Sichuan Anning Iron and TitaniumLtd's solo analyst currently expects revenues in 2024 to be CN¥1.9b, approximately in line with the last 12 months. Statutory earnings per share are supposed to reduce 3.3% to CN¥2.25 in the same period. Before this latest update, the analyst had been forecasting revenues of CN¥2.1b and earnings per share (EPS) of CN¥2.91 in 2024. Indeed, we can see that the analyst is a lot more bearish about Sichuan Anning Iron and TitaniumLtd's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for Sichuan Anning Iron and TitaniumLtd

The consensus price target fell 23% to CN¥29.25, with the weaker earnings outlook clearly leading analyst valuation estimates.

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. From these estimates it looks as though the analyst expects the years of declining sales to come to an end, given the flat revenue forecast out to 2024. That would be a definite improvement, given that the past three years have seen sales shrink 7.4% annually. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 9.7% annually. So it's pretty clear that, although revenues are improving, Sichuan Anning Iron and TitaniumLtd is still expected to grow slower than the industry.

The Bottom Line

The biggest issue in the new estimates is that the analyst has reduced their earnings per share estimates, suggesting business headwinds lay ahead for Sichuan Anning Iron and TitaniumLtd. Unfortunately the analyst also downgraded their revenue estimates, and industry data suggests that Sichuan Anning Iron and TitaniumLtd's revenues are expected to grow slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Sichuan Anning Iron and TitaniumLtd.

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 Sichuan Anning Iron and TitaniumLtd going out as far as 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 with high insider ownership.

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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.