Analysts Just Slashed Their Changchun BCHT Biotechnology Co. (SHSE:688276) EPS Numbers

One thing we could say about the analysts on Changchun BCHT Biotechnology Co. (SHSE:688276) - 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 the analysts have soured majorly on the business.

After this downgrade, Changchun BCHT Biotechnology's eight analysts are now forecasting revenues of CN¥1.9b in 2024. This would be a satisfactory 3.1% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to rise 3.6% to CN¥1.32. Before this latest update, the analysts had been forecasting revenues of CN¥2.4b and earnings per share (EPS) of CN¥1.70 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.

Check out our latest analysis for Changchun BCHT Biotechnology

It'll come as no surprise then, to learn that the analysts have cut their price target 16% to CN¥39.37.

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 Changchun BCHT Biotechnology's revenue growth is expected to slow, with the forecast 6.2% annualised growth rate until the end of 2024 being well below the historical 16% p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 22% per year. Factoring in the forecast slowdown in growth, it seems obvious that Changchun BCHT Biotechnology is also expected to grow slower than other industry participants.

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 Changchun BCHT Biotechnology'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 Changchun BCHT Biotechnology.

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 Changchun BCHT Biotechnology 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.