News Flash: 2 Analysts Think Guangdong Great River Smarter Logistics Co., Ltd. (SZSE:002930) Earnings Are Under Threat

One thing we could say about the analysts on Guangdong Great River Smarter Logistics Co., Ltd. (SZSE:002930) - 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 analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the latest downgrade, Guangdong Great River Smarter Logistics' dual analysts currently expect revenues in 2024 to be CN¥1.5b, approximately in line with the last 12 months. Per-share earnings are expected to surge 34% to CN¥0.79. Previously, the analysts had been modelling revenues of CN¥1.8b and earnings per share (EPS) of CN¥0.89 in 2024. Indeed, we can see that the analysts are a lot more bearish about Guangdong Great River Smarter Logistics' prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for Guangdong Great River Smarter Logistics

The consensus price target fell 29% to CN¥11.90, with the weaker earnings outlook clearly leading analyst valuation estimates.

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. It's pretty clear that there is an expectation that Guangdong Great River Smarter Logistics' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 0.4% growth on an annualised basis. This is compared to a historical growth rate of 23% 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 4.1% 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 Guangdong Great River Smarter Logistics.

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. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Guangdong Great River Smarter Logistics' revenues are expected to grow slower than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Guangdong Great River Smarter Logistics.

Still, the long-term prospects of the business are much more relevant than next year's earnings. 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.

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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.