Investors in Yantai China Pet Foods Co., Ltd. (SZSE:002891) had a good week, as its shares rose 8.6% to close at CN¥20.34 following the release of its quarterly results. Results look mixed - while revenue fell marginally short of analyst estimates at CN¥1.1b, statutory earnings beat expectations 3.8%, with Yantai China Pet Foods reporting profits of CN¥0.29 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Taking into account the latest results, the current consensus from Yantai China Pet Foods' 15 analysts is for revenues of CN¥4.38b in 2024. This would reflect a solid 9.7% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be CN¥0.98, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of CN¥4.38b and earnings per share (EPS) of CN¥0.98 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

With no major changes to earnings forecasts, the consensus price target fell 12% to CN¥26.30, suggesting that the analysts might have previously been hoping for an earnings upgrade. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Yantai China Pet Foods at CN¥29.70 per share, while the most bearish prices it at CN¥22.30. This is a very narrow spread of estimates, implying either that Yantai China Pet Foods is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Yantai China Pet Foods'historical trends, as the 20% annualised revenue growth to the end of 2024 is roughly in line with the 18% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 11% per year. So although Yantai China Pet Foods is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Yantai China Pet Foods analysts - going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Yantai China Pet Foods that you should be aware of.

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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.