WuXi AppTec Co., Ltd. (SHSE:603259) Analysts Just Slashed This Year's Estimates

Today is shaping up negative for WuXi AppTec Co., Ltd. (SHSE:603259) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Both revenue and earnings per share (EPS) estimates were cut sharply as the analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the latest downgrade, WuXi AppTec's 25 analysts currently expect revenues in 2024 to be CN¥40b, approximately in line with the last 12 months. Per-share earnings are expected to rise 3.4% to CN¥3.39. Previously, the analysts had been modelling revenues of CN¥48b and earnings per share (EPS) of CN¥3.96 in 2024. Indeed, we can see that the analysts are a lot more bearish about WuXi AppTec's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for WuXi AppTec

It'll come as no surprise then, to learn that the analysts have cut their price target 31% to CN¥78.14.

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 1.2% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 31% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 14% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - WuXi AppTec is expected to lag 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 WuXi AppTec. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that WuXi AppTec's revenues are expected to grow slower than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of WuXi AppTec.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for WuXi AppTec 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.