One thing we could say about the analysts on Pulike Biological Engineering, Inc. (SHSE:603566) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the downgrade, the latest consensus from Pulike Biological Engineering's six analysts is for revenues of CN¥1.4b in 2024, which would reflect a meaningful 18% improvement in sales compared to the last 12 months. Per-share earnings are expected to jump 93% to CN¥0.79. Before this latest update, the analysts had been forecasting revenues of CN¥1.6b and earnings per share (EPS) of CN¥0.91 in 2024. Indeed, we can see that the analysts are a lot more bearish about Pulike Biological Engineering's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

The consensus price target fell 12% to CN¥19.98, with the weaker earnings outlook clearly leading analyst valuation estimates.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Pulike Biological Engineering'shistorical trends, as the 18% annualised revenue growth to the end of 2024 is roughly in line with the 15% annual revenue growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 15% per year. So although Pulike Biological Engineering is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

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. There was also a drop in their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Pulike Biological Engineering after today.

Not only have the analysts been downgrading the stock, but it looks like Pulike Biological Engineering might find it hard to maintain its dividends, if these forecasts prove accurate. For more information, you can click here to learn more about our dividend analysis and the 1 potential risk 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.

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