Beijing Wantai Biological Pharmacy Enterprise Co., Ltd. (SHSE:603392) Analysts Are Reducing Their Forecasts For This Year

The analysts covering Beijing Wantai Biological Pharmacy Enterprise Co., Ltd. (SHSE:603392) 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 latest downgrade, the current consensus, from the two analysts covering Beijing Wantai Biological Pharmacy Enterprise, is for revenues of CN¥3.0b in 2024, which would reflect a considerable 9.7% reduction in Beijing Wantai Biological Pharmacy Enterprise's sales over the past 12 months. Per-share earnings are expected to soar 430% to CN¥0.54. Previously, the analysts had been modelling revenues of CN¥3.6b and earnings per share (EPS) of CN¥0.89 in 2024. Indeed, we can see that the analysts are a lot more bearish about Beijing Wantai Biological Pharmacy Enterprise's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Beijing Wantai Biological Pharmacy Enterprise

The consensus price target fell 9.7% to CN¥63.10, 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. We would highlight that sales are expected to reverse, with a forecast 13% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 37% 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 22% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Beijing Wantai Biological Pharmacy Enterprise 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. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Beijing Wantai Biological Pharmacy Enterprise'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 Beijing Wantai Biological Pharmacy Enterprise.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for 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.

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