Wanda Film Holding Co., Ltd. (SZSE:002739) Analysts Just Cut Their EPS Forecasts Substantially

One thing we could say about the analysts on Wanda Film Holding Co., Ltd. (SZSE:002739) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.

Following this downgrade, Wanda Film Holding's eleven analysts are forecasting 2024 revenues to be CN¥14b, approximately in line with the last 12 months. Statutory earnings per share are forecast to be CN¥0.27, approximately in line with the last 12 months. Previously, the analysts had been modelling revenues of CN¥16b and earnings per share (EPS) of CN¥0.59 in 2024. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a pretty serious decline to earnings per share numbers as well.

View our latest analysis for Wanda Film Holding

It'll come as no surprise then, to learn that the analysts have cut their price target 22% to CN¥12.81.

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. The analysts are definitely expecting Wanda Film Holding's growth to accelerate, with the forecast 2.1% annualised growth to the end of 2024 ranking favourably alongside historical growth of 0.9% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 14% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Wanda Film Holding is expected to grow slower than the wider industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Wanda Film Holding. 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. At Simply Wall St, we have a full range of analyst estimates for Wanda Film Holding 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 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.