One thing we could say about the analysts on Changchun BCHT Biotechnology Co. (SHSE:688276) - 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.

After this downgrade, Changchun BCHT Biotechnology's eight analysts are now forecasting revenues of CN¥1.9b in 2024. This would be a satisfactory 3.1% improvement in sales compared to the last 12 months. Per-share earnings are expected to rise 3.6% to CN¥1.32. Before this latest update, the analysts had been forecasting revenues of CN¥2.4b and earnings per share (EPS) of CN¥1.70 in 2024. Indeed, we can see that the analysts are a lot more bearish about Changchun BCHT Biotechnology's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

The consensus price target fell 16% to CN¥39.37, with the weaker earnings outlook clearly leading analyst valuation estimates.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Changchun BCHT Biotechnology's revenue growth is expected to slow, with the forecast 6.2% annualised growth rate until the end of 2024 being well below the historical 16% p.a. growth over the last three years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 22% annually. Factoring in the forecast slowdown in growth, it seems obvious that Changchun BCHT Biotechnology is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Changchun BCHT Biotechnology's revenues are expected to grow slower than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Changchun BCHT Biotechnology going out to 2026, and you can see them free on our platform here.

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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.