Need To Know: Analysts Just Made A Substantial Cut To Their Guangdong Great River Smarter Logistics Co., Ltd. (SZSE:002930) Estimates

Market forces rained on the parade of Guangdong Great River Smarter Logistics Co., Ltd. (SZSE:002930) shareholders today, when the analysts downgraded their forecasts for next year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.

Following the downgrade, the most recent consensus for Guangdong Great River Smarter Logistics from its two analysts is for revenues of CN¥1.8b in 2025 which, if met, would be a sizeable 21% increase on its sales over the past 12 months. Per-share earnings are expected to leap 41% to CN¥0.70. Previously, the analysts had been modelling revenues of CN¥2.2b and earnings per share (EPS) of CN¥0.97 in 2025. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a large cut to earnings per share numbers as well.

Check out our latest analysis for Guangdong Great River Smarter Logistics

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Guangdong Great River Smarter Logistics' revenue growth is expected to slow, with the forecast 17% annualised growth rate until the end of 2025 being well below the historical 21% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.5% per year. Even after the forecast slowdown in growth, it seems obvious that Guangdong Great River Smarter Logistics is also expected to grow faster than the wider industry.

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. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. After a cut like that, investors could be forgiven for thinking analysts are a lot more bearish on Guangdong Great River Smarter Logistics, and a few readers might choose to steer clear of the stock.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for Guangdong Great River Smarter Logistics 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.