Beijing Urban Construction Investment & Development Co., Ltd. (SHSE:600266) Analysts Just Trimmed Their Revenue Forecasts By 24%

Market forces rained on the parade of Beijing Urban Construction Investment & Development Co., Ltd. (SHSE:600266) shareholders today, when the analysts downgraded their forecasts for this year. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

Following the downgrade, the consensus from four analysts covering Beijing Urban Construction Investment & Development is for revenues of CN¥25b in 2024, implying a considerable 18% decline in sales compared to the last 12 months. Statutory earnings per share are presumed to leap 1,964% to CN¥0.47. Previously, the analysts had been modelling revenues of CN¥33b and earnings per share (EPS) of CN¥0.57 in 2024. It looks like analyst sentiment has declined substantially, with a sizeable cut to revenue estimates and a real cut to earnings per share numbers as well.

See our latest analysis for Beijing Urban Construction Investment & Development

The consensus price target fell 20% to CN¥6.81, with the weaker earnings outlook clearly leading analyst valuation estimates.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with a forecast 18% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 15% 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 5.3% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Beijing Urban Construction Investment & Development is expected to lag 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 Beijing Urban Construction Investment & Development. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. 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 Beijing Urban Construction Investment & Development after today.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Beijing Urban Construction Investment & Development analysts - 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 that insiders are buying.

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