One Yestar Healthcare Holdings Company Limited (HKG:2393) Analyst Has Been Cutting Their Forecasts

One thing we could say about the covering analyst on Yestar Healthcare Holdings Company Limited (HKG:2393) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

After the downgrade, the consensus from Yestar Healthcare Holdings' one analyst is for revenues of CN¥4.3b in 2022, which would reflect a noticeable 6.1% decline in sales compared to the last year of performance. Before the latest update, the analyst was foreseeing CN¥5.2b of revenue in 2022. It looks like forecasts have become a fair bit less optimistic on Yestar Healthcare Holdings, given the substantial drop in revenue estimates.

View our latest analysis for Yestar Healthcare Holdings

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 sales are expected to reverse, with a forecast 6.1% annualised revenue decline to the end of 2022. That is a notable change from historical growth of 4.3% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 44% annually for the foreseeable future. It's pretty clear that Yestar Healthcare Holdings' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst cut their revenue estimates for this year. They also expect company revenue to perform worse than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Yestar Healthcare Holdings going forwards.

Of course, there's always more to the story. We have forecasts for Yestar Healthcare Holdings from one covering analyst, 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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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.