Earnings Miss: Here's What Sinoma International Engineering Co.,Ltd (SHSE:600970) Analysts Are Forecasting For This Year

Sinoma International Engineering Co.,Ltd (SHSE:600970) missed earnings with its latest full-year results, disappointing overly-optimistic forecasters. Results look to have been somewhat negative - revenue fell 6.9% short of analyst estimates at CN¥46b, and statutory earnings of CN¥1.14 per share missed forecasts by 7.2%. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Taking into account the latest results, the most recent consensus for Sinoma International EngineeringLtd from eleven analysts is for revenues of CN¥49.7b in 2025. If met, it would imply an okay 7.8% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 8.1% to CN¥1.22. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥53.8b and earnings per share (EPS) of CN¥1.37 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.

See our latest analysis for Sinoma International EngineeringLtd

Despite the cuts to forecast earnings, there was no real change to the CN¥13.46 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. The most optimistic Sinoma International EngineeringLtd analyst has a price target of CN¥14.15 per share, while the most pessimistic values it at CN¥12.50. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Sinoma International EngineeringLtd's revenue growth is expected to slow, with the forecast 7.8% annualised growth rate until the end of 2025 being well below the historical 13% 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) 8.6% annually. So it's pretty clear that, while Sinoma International EngineeringLtd's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Sinoma International EngineeringLtd. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as 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 Sinoma International EngineeringLtd. Long-term earnings power is much more important than next year's profits. We have forecasts for Sinoma International EngineeringLtd going out to 2027, and you can see them free on our platform here.

Even so, be aware that Sinoma International EngineeringLtd is showing 1 warning sign in our investment analysis , you should know about...

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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.