Jiangsu Pacific Precision Forging Co., Ltd. Just Missed Earnings And Its Revenue Numbers Were Weaker Than Expected

As you might know, Jiangsu Pacific Precision Forging Co., Ltd. (SZSE:300258) recently reported its first-quarter numbers. Revenues were CN¥504m, 15% below analyst expectations, although losses didn't appear to worsen significantly, with a statutory per-share loss of CN¥0.48 being in line with what the analysts anticipated. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Jiangsu Pacific Precision Forging

Taking into account the latest results, the most recent consensus for Jiangsu Pacific Precision Forging from three analysts is for revenues of CN¥2.61b in 2024. If met, it would imply a substantial 21% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 44% to CN¥0.61. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥2.66b and earnings per share (EPS) of CN¥0.65 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

The consensus price target held steady at CN¥15.44, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Jiangsu Pacific Precision Forging's past performance and to peers in the same industry. The analysts are definitely expecting Jiangsu Pacific Precision Forging's growth to accelerate, with the forecast 29% annualised growth to the end of 2024 ranking favourably alongside historical growth of 15% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 18% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Jiangsu Pacific Precision Forging is expected to grow much 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 Pacific Precision Forging. 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Jiangsu Pacific Precision Forging going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Jiangsu Pacific Precision Forging has 2 warning signs we think you should be aware of.

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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.