Earnings Miss: Tianneng Battery Group Co., Ltd. Missed EPS By 37% And Analysts Are Revising Their Forecasts

Tianneng Battery Group Co., Ltd. (SHSE:688819) just released its latest annual report and things are not looking great. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at CN¥45b, statutory earnings missed forecasts by an incredible 37%, coming in at just CN¥1.60 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Tianneng Battery Group after the latest results.

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Taking into account the latest results, the consensus forecast from Tianneng Battery Group's four analysts is for revenues of CN¥51.6b in 2025. This reflects a meaningful 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 47% to CN¥2.36. Before this earnings report, the analysts had been forecasting revenues of CN¥54.0b and earnings per share (EPS) of CN¥2.97 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a pretty serious reduction to earnings per share estimates.

View our latest analysis for Tianneng Battery Group

Despite the cuts to forecast earnings, there was no real change to the CN¥40.87 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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 Tianneng Battery Group, with the most bullish analyst valuing it at CN¥54.39 and the most bearish at CN¥32.00 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Tianneng Battery Group's growth to accelerate, with the forecast 15% annualised growth to the end of 2025 ranking favourably alongside historical growth of 5.8% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 18% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Tianneng Battery Group is expected to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Tianneng Battery Group going out to 2027, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months 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.