It's been a sad week for Shandong Pharmaceutical Glass Co.Ltd (SHSE:600529), who've watched their investment drop 11% to CN¥28.48 in the week since the company reported its quarterly result. The results were mixed; although revenues of CN¥1.3b fell 12% short of analyst estimates, statutory earnings per share (EPS) of CN¥0.33 beat expectations by 18%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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 Shandong Pharmaceutical GlassLtd's seven analysts is for revenues of CN¥5.53b in 2024. This would reflect a meaningful 10% increase on its revenue over the past 12 months. Per-share earnings are expected to ascend 16% to CN¥1.45. Before this earnings report, the analysts had been forecasting revenues of CN¥5.68b and earnings per share (EPS) of CN¥1.48 in 2024. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.
The analysts made no major changes to their price target of CN¥34.17, suggesting the downgrades are not expected to have a long-term impact on Shandong Pharmaceutical GlassLtd's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Shandong Pharmaceutical GlassLtd analyst has a price target of CN¥37.20 per share, while the most pessimistic values it at CN¥30.60. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Shandong Pharmaceutical GlassLtd'shistorical trends, as the 14% annualised revenue growth to the end of 2024 is roughly in line with the 13% 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 19% per year. So it's pretty clear that Shandong Pharmaceutical GlassLtd is expected to grow slower than similar companies in the same industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Shandong Pharmaceutical GlassLtd. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target held steady at CN¥34.17, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Shandong Pharmaceutical GlassLtd going out to 2026, and you can see them free on our platform here..
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months 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.