Fuyao Glass Industry Group Co., Ltd. (SHSE:600660) Analysts Are Pretty Bullish On The Stock After Recent Results

As you might know, Fuyao Glass Industry Group Co., Ltd. (SHSE:600660) recently reported its third-quarter numbers. Results look mixed - while revenue fell marginally short of analyst estimates at CN¥10.0b, statutory earnings beat expectations 3.1%, with Fuyao Glass Industry Group reporting profits of CN¥0.76 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Fuyao Glass Industry Group after the latest results.

Check out our latest analysis for Fuyao Glass Industry Group

Following the latest results, Fuyao Glass Industry Group's 23 analysts are now forecasting revenues of CN¥46.2b in 2025. This would be a major 23% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 24% to CN¥3.33. Before this earnings report, the analysts had been forecasting revenues of CN¥46.3b and earnings per share (EPS) of CN¥3.20 in 2025. So the consensus seems to have become somewhat more optimistic on Fuyao Glass Industry Group's earnings potential following these results.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 7.9% to CN¥63.25. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Fuyao Glass Industry Group, with the most bullish analyst valuing it at CN¥72.00 and the most bearish at CN¥44.00 per share. 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Fuyao Glass Industry Group's rate of growth is expected to accelerate meaningfully, with the forecast 18% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 14% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 18% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Fuyao Glass Industry Group is expected to grow at about the same rate as the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Fuyao Glass Industry Group's earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Fuyao Glass Industry Group. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Fuyao Glass Industry Group analysts - going out to 2026, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Fuyao Glass Industry Group , and understanding this should be part of your investment process.

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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.