Stock Analysis

Need To Know: The Consensus Just Cut Its Pulike Biological Engineering, Inc. (SHSE:603566) Estimates For 2024

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The analysts covering Pulike Biological Engineering, Inc. (SHSE:603566) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

After the downgrade, the six analysts covering Pulike Biological Engineering are now predicting revenues of CN¥1.4b in 2024. If met, this would reflect a meaningful 18% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to shoot up 93% to CN¥0.79. Previously, the analysts had been modelling revenues of CN¥1.6b and earnings per share (EPS) of CN¥0.91 in 2024. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a real cut to earnings per share numbers as well.

View our latest analysis for Pulike Biological Engineering

SHSE:603566 Earnings and Revenue Growth April 28th 2024

It'll come as no surprise then, to learn that the analysts have cut their price target 12% to CN¥19.98.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 18% growth on an annualised basis. That is in line with its 15% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 15% per year. So although Pulike Biological Engineering is expected to maintain its revenue growth rate, it's only growing at about the rate of 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 Pulike Biological Engineering. Lamentably, they also downgraded their sales forecasts, but the business is still expected to grow at roughly the same rate as the market itself. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Given the stark change in sentiment, we'd understand if investors became more cautious on Pulike Biological Engineering after today.

After a downgrade like this one, it's pretty clear that previous forecasts were too optimistic. Worse, it's possible that the forecast future income could struggle to cover Pulike Biological Engineering'sdividend payments. For more information, you can click here to learn more about our dividend analysis and the 1 potential concern we've identified.

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Find out whether Pulike Biological Engineering is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.