Zhengzhou Qianweiyangchu Food Co., Ltd. (SZSE:001215) came out with its first-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Results look mixed - while revenue fell marginally short of analyst estimates at CN¥463m, statutory earnings were in line with expectations, at CN¥1.56 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Taking into account the latest results, the most recent consensus for Zhengzhou Qianweiyangchu Food from 13 analysts is for revenues of CN¥2.18b in 2024. If met, it would imply a solid 13% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 57% to CN¥2.19. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥2.36b and earnings per share (EPS) of CN¥2.25 in 2024. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

The consensus price target fell 10% to CN¥61.07, with the weaker earnings outlook clearly leading valuation estimates. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Zhengzhou Qianweiyangchu Food, with the most bullish analyst valuing it at CN¥81.05 and the most bearish at CN¥42.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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 can infer from the latest estimates that forecasts expect a continuation of Zhengzhou Qianweiyangchu Food'shistorical trends, as the 18% annualised revenue growth to the end of 2024 is roughly in line with the 20% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 12% annually. So it's pretty clear that Zhengzhou Qianweiyangchu Food is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Zhengzhou Qianweiyangchu Food. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 Zhengzhou Qianweiyangchu Food going out to 2026, and you can see them free on our platform here..

Before you take the next step you should know about the 1 warning sign for Zhengzhou Qianweiyangchu Food that we have uncovered.

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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.