Yantai China Pet Foods Co., Ltd. (SZSE:002891) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Results look mixed - while revenue fell marginally short of analyst estimates at CN¥878m, statutory earnings beat expectations 6.3%, with Yantai China Pet Foods reporting profits of CN¥0.19 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. 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 most recent consensus for Yantai China Pet Foods from 15 analysts is for revenues of CN¥4.40b in 2024. If met, it would imply a meaningful 12% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 7.3% to CN¥1.01. In the lead-up to this report, the analysts had been modelling revenues of CN¥4.43b and earnings per share (EPS) of CN¥0.91 in 2024. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the nice gain to earnings per share expectations following these results.
The consensus price target was unchanged at CN¥31.14, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Yantai China Pet Foods analyst has a price target of CN¥35.76 per share, while the most pessimistic values it at CN¥23.40. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Yantai China Pet Foods' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Yantai China Pet Foods'historical trends, as the 17% annualised revenue growth to the end of 2024 is roughly in line with the 19% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 13% annually. So it's pretty clear that Yantai China Pet Foods is forecast to grow substantially faster than its industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Yantai China Pet Foods following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on Yantai China Pet Foods. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Yantai China Pet Foods going out to 2026, and you can see them free on our platform here..
You can also see whether Yantai China Pet Foods is carrying too much debt, and whether its balance sheet is healthy, for 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.