Sichuan Road & Bridge Group Co.,Ltd Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

As you might know, Sichuan Road & Bridge Group Co.,Ltd (SHSE:600039) last week released its latest yearly, and things did not turn out so great for shareholders. The analysts look to have been far too optimistic in the lead-up to these results, with revenues of (CN¥115b) coming in 23% below what they had expected. Statutory earnings per share of CN¥1.04 fell 40% short. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Sichuan Road & Bridge GroupLtd

Taking into account the latest results, the most recent consensus for Sichuan Road & Bridge GroupLtd from twin analysts is for revenues of CN¥126.3b in 2024. If met, it would imply a notable 9.8% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 153% to CN¥2.61. In the lead-up to this report, the analysts had been modelling revenues of CN¥168.1b and earnings per share (EPS) of CN¥2.02 in 2024. So there's been quite a change-up of views after the latest results, with the analysts making a serious cut to their revenue forecasts while also granting a massive increase in to the earnings per share numbers.

The analysts have cut their price target 41% to CN¥8.41per share, suggesting that the declining revenue was a more crucial indicator than the expected improvement in earnings.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Sichuan Road & Bridge GroupLtd's revenue growth is expected to slow, with the forecast 9.8% annualised growth rate until the end of 2024 being well below the historical 27% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 10% annually. So it's pretty clear that, while Sichuan Road & Bridge GroupLtd's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Sichuan Road & Bridge GroupLtd's earnings potential next year. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. Even so, earnings are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Sichuan Road & Bridge GroupLtd's future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with Sichuan Road & Bridge GroupLtd (including 2 which are concerning) .

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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.