Earnings Update: Jiangsu Xinquan Automotive Trim Co.,Ltd. (SHSE:603179) Just Reported Its Full-Year Results And Analysts Are Updating Their Forecasts

The full-year results for Jiangsu Xinquan Automotive Trim Co.,Ltd. (SHSE:603179) were released last week, making it a good time to revisit its performance. Jiangsu Xinquan Automotive TrimLtd beat revenue expectations by 3.2%, at CN¥11b. Statutory earnings per share (EPS) came in at CN¥1.65, some 2.7% short of analyst estimates. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Jiangsu Xinquan Automotive TrimLtd

Taking into account the latest results, the consensus forecast from Jiangsu Xinquan Automotive TrimLtd's eight analysts is for revenues of CN¥13.7b in 2024. This reflects a sizeable 29% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 38% to CN¥2.28. Before this earnings report, the analysts had been forecasting revenues of CN¥13.7b and earnings per share (EPS) of CN¥2.35 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at CN¥60.84, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. Currently, the most bullish analyst values Jiangsu Xinquan Automotive TrimLtd at CN¥62.00 per share, while the most bearish prices it at CN¥60.11. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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 29% growth on an annualised basis. That is in line with its 27% 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 16% per year. So it's pretty clear that Jiangsu Xinquan Automotive TrimLtd is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Jiangsu Xinquan Automotive TrimLtd. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at CN¥60.84, with the latest estimates not enough to have an impact on their price targets.

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

It is also worth noting that we have found 2 warning signs for Jiangsu Xinquan Automotive TrimLtd (1 is significant!) that you need to take into consideration.

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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.