This Broker Just Slashed Their Tianjin Chase Sun Pharmaceutical Co.,Ltd (SZSE:300026) Earnings Forecasts

One thing we could say about the covering analyst on Tianjin Chase Sun Pharmaceutical Co.,Ltd (SZSE:300026) - 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) estimates were cut sharply as the analyst factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the downgrade, the current consensus from Tianjin Chase Sun PharmaceuticalLtd's sole analyst is for revenues of CN¥6.2b in 2024 which - if met - would reflect a reasonable 4.7% increase on its sales over the past 12 months. Statutory earnings per share are presumed to leap 39% to CN¥0.18. Previously, the analyst had been modelling revenues of CN¥7.4b and earnings per share (EPS) of CN¥0.24 in 2024. Indeed, we can see that the analyst is a lot more bearish about Tianjin Chase Sun PharmaceuticalLtd's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for Tianjin Chase Sun PharmaceuticalLtd

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 Tianjin Chase Sun PharmaceuticalLtd's revenue growth is expected to slow, with the forecast 4.7% annualised growth rate until the end of 2024 being well below the historical 6.7% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 13% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Tianjin Chase Sun PharmaceuticalLtd.

The Bottom Line

The most important thing to take away is that the analyst cut their earnings per share estimates, expecting a clear decline in business conditions. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. After a cut like that, investors could be forgiven for thinking the analyst is a lot more bearish on Tianjin Chase Sun PharmaceuticalLtd, and a few readers might choose to steer clear of the stock.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Tianjin Chase Sun PharmaceuticalLtd going out as far as 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.