News Flash: 7 Analysts Think Yantai Dongcheng Pharmaceutical Group Co.,Ltd. (SZSE:002675) Earnings Are Under Threat

Market forces rained on the parade of Yantai Dongcheng Pharmaceutical Group Co.,Ltd. (SZSE:002675) shareholders today, when the analysts downgraded their forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.

After this downgrade, Yantai Dongcheng Pharmaceutical GroupLtd's seven analysts are now forecasting revenues of CN¥3.4b in 2024. This would be a decent 10% improvement in sales compared to the last 12 months. Per-share earnings are expected to bounce 34% to CN¥0.36. Previously, the analysts had been modelling revenues of CN¥3.9b and earnings per share (EPS) of CN¥0.56 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 Yantai Dongcheng Pharmaceutical GroupLtd

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Yantai Dongcheng Pharmaceutical GroupLtd's rate of growth is expected to accelerate meaningfully, with the forecast 10% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 4.2% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 24% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Yantai Dongcheng Pharmaceutical GroupLtd 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 Yantai Dongcheng Pharmaceutical GroupLtd. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Given the serious cut to this year's outlook, it's clear that analysts have turned more bearish on Yantai Dongcheng Pharmaceutical GroupLtd, and we wouldn't blame shareholders for feeling a little more cautious themselves.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for Yantai Dongcheng Pharmaceutical GroupLtd going out to 2026, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies 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.