Today is shaping up negative for Beijing Wantai Biological Pharmacy Enterprise Co., Ltd. (SHSE:603392) shareholders, with the analysts delivering a substantial negative revision to this year’s forecasts. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.
Following the downgrade, the consensus from three analysts covering Beijing Wantai Biological Pharmacy Enterprise is for revenues of CN¥5.2b in 2024, implying a measurable 5.1% decline in sales compared to the last 12 months. Statutory earnings per share are anticipated to reduce 4.8% to CN¥0.94 in the same period. Previously, the analysts had been modelling revenues of CN¥11b and earnings per share (EPS) of CN¥3.18 in 2024. Indeed, we can see that the analysts are a lot more bearish about Beijing Wantai Biological Pharmacy Enterprise’s prospects, administering a pretty serious reduction to revenue estimates and slashing their EPS estimates to boot.
View our latest analysis for Beijing Wantai Biological Pharmacy Enterprise
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 5.1% by the end of 2024. This indicates a significant reduction from annual growth of 44% 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 24% per year. It’s pretty clear that Beijing Wantai Biological Pharmacy Enterprise’s revenues are expected to perform substantially worse than 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 Wantai Biological Pharmacy Enterprise. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Beijing Wantai Biological Pharmacy Enterprise’s revenues are expected to grow slower than the wider market. Given the serious cut to this year’s outlook, it’s clear that analysts have turned more bearish on Beijing Wantai Biological Pharmacy Enterprise, and we wouldn’t blame shareholders for feeling a little more cautious themselves.
With that said, the long-term trajectory of the company’s earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Beijing Wantai Biological Pharmacy Enterprise going out to 2025, 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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Find out whether Beijing Wantai Biological Pharmacy Enterprise is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.
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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.
