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Analysts Just Shaved Their Xinjiangtianshan Cement Co.,Ltd (SZSE:000877) Forecasts Dramatically

アナリストは新疆天山セメント株式会社(SZSE:000877)の予測を大幅に下方修正しました

Simply Wall St ·  2024/04/01 00:25

One thing we could say about the analysts on Xinjiangtianshan Cement Co.,Ltd (SZSE:000877) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. 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 seven analysts covering Xinjiangtianshan CementLtd is for revenues of CN¥97b in 2024, implying an uncomfortable 10% decline in sales compared to the last 12 months. Statutory earnings per share are supposed to descend 18% to CN¥0.18 in the same period. Previously, the analysts had been modelling revenues of CN¥125b and earnings per share (EPS) of CN¥0.40 in 2024. It looks like analyst sentiment has declined substantially, with a pretty serious reduction to revenue estimates and a large cut to earnings per share numbers as well.

earnings-and-revenue-growth
SZSE:000877 Earnings and Revenue Growth April 1st 2024

Analysts made no major changes to their price target of CN¥7.65, suggesting the downgrades are not expected to have a long-term impact on Xinjiangtianshan CementLtd's valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with a forecast 10% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 29% 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 9.4% per year. It's pretty clear that Xinjiangtianshan CementLtd'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 Xinjiangtianshan CementLtd. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. The lack of change in the price target is puzzling in light of the downgrade but, with a serious decline expected this year, we wouldn't be surprised if investors were a bit wary of Xinjiangtianshan CementLtd.

As you can see, the analysts clearly aren't bullish, and there might be good reason for that. We've identified some potential issues with Xinjiangtianshan CementLtd's financials, such as its declining profit margins. For more information, you can click here to discover this and the 3 other flags we've identified.

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.

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.

これらの内容は、情報提供及び投資家教育のためのものであり、いかなる個別株や投資方法を推奨するものではありません。 更に詳しい情報
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