Ningbo Tuopu Group Co.,Ltd. Just Missed Earnings - But Analysts Have Updated Their Models

Investors in Ningbo Tuopu Group Co.,Ltd. (SHSE:601689) had a good week, as its shares rose 6.2% to close at CN¥33.66 following the release of its second-quarter results. Statutory earnings per share of CN¥0.32 unfortunately missed expectations by 10%, although it was encouraging to see revenues of CN¥6.5b exceed expectations by 9.2%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Ningbo Tuopu GroupLtd after the latest results.

View our latest analysis for Ningbo Tuopu GroupLtd

After the latest results, the 21 analysts covering Ningbo Tuopu GroupLtd are now predicting revenues of CN¥26.6b in 2024. If met, this would reflect a notable 17% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 18% to CN¥1.76. Before this earnings report, the analysts had been forecasting revenues of CN¥26.9b and earnings per share (EPS) of CN¥1.76 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of CN¥50.53, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Ningbo Tuopu GroupLtd, with the most bullish analyst valuing it at CN¥60.00 and the most bearish at CN¥40.32 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 37% growth on an annualised basis. That is in line with its 32% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 18% annually. So it's pretty clear that Ningbo Tuopu GroupLtd is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. 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 Ningbo Tuopu GroupLtd. 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 Ningbo Tuopu GroupLtd going out to 2026, and you can see them free on our platform here..

Even so, be aware that Ningbo Tuopu GroupLtd is showing 2 warning signs in our investment analysis , you should know about...

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.