Analysts Just Slashed Their Changzhou Almaden Co., Ltd. (SZSE:002623) EPS Numbers

Market forces rained on the parade of Changzhou Almaden Co., Ltd. (SZSE:002623) shareholders today, when the analysts downgraded their forecasts for this year. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

After this downgrade, Changzhou Almaden's three analysts are now forecasting revenues of CN¥4.0b in 2024. This would be a meaningful 8.7% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to shoot up 55% to CN¥0.64. Previously, the analysts had been modelling revenues of CN¥4.7b and earnings per share (EPS) of CN¥0.99 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.

See our latest analysis for Changzhou Almaden

It'll come as no surprise then, to learn that the analysts have cut their price target 20% to CN¥24.52.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Changzhou Almaden's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 8.7% growth on an annualised basis. This is compared to a historical growth rate of 25% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 23% annually. Factoring in the forecast slowdown in growth, it seems obvious that Changzhou Almaden is also expected to grow slower than other industry participants.

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 Changzhou Almaden. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Changzhou Almaden's revenues are expected to grow slower than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

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 Changzhou Almaden 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.