Nuode New Materials Co.,Ltd. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

The analysts might have been a bit too bullish on Nuode New Materials Co.,Ltd. (SHSE:600110), given that the company fell short of expectations when it released its full-year results last week. Results showed a clear earnings miss, with CN¥4.6b revenue coming in 4.6% lower than what the analystsexpected. Statutory earnings per share (EPS) of CN¥0.017 missed the mark badly, arriving some 26% below what was expected. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Nuode New MaterialsLtd

After the latest results, the dual analysts covering Nuode New MaterialsLtd are now predicting revenues of CN¥6.17b in 2024. If met, this would reflect a substantial 35% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 51% to CN¥0.024. In the lead-up to this report, the analysts had been modelling revenues of CN¥5.50b and earnings per share (EPS) of CN¥0.025 in 2024. While revenue forecasts have increased substantially, the analysts are a little more pessimistic on earnings, suggesting that the growth does not come without cost.

The consensus price target was unchanged at CN¥4.55, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts.

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 analysts are definitely expecting Nuode New MaterialsLtd's growth to accelerate, with the forecast 35% annualised growth to the end of 2024 ranking favourably alongside historical growth of 21% 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 Nuode New MaterialsLtd is expected to grow much faster than its 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. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is 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 Nuode New MaterialsLtd. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Nuode New MaterialsLtd going out as far as 2026, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Nuode New MaterialsLtd (at least 2 which are potentially serious) , and understanding these should be part of your investment process.

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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.