Earnings Report: Ningbo Haitian Precision Machinery Co.,Ltd. Missed Revenue Estimates By 8.8%

Ningbo Haitian Precision Machinery Co.,Ltd. (SHSE:601882) missed earnings with its latest full-year results, disappointing overly-optimistic forecasters. Results look to have been somewhat negative - revenue fell 8.8% short of analyst estimates at CN¥3.3b, and statutory earnings of CN¥1.17 per share missed forecasts by 3.4%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Ningbo Haitian Precision MachineryLtd after the latest results.

See our latest analysis for Ningbo Haitian Precision MachineryLtd

Taking into account the latest results, the consensus forecast from Ningbo Haitian Precision MachineryLtd's six analysts is for revenues of CN¥3.89b in 2024. This reflects a solid 17% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 19% to CN¥1.39. Before this earnings report, the analysts had been forecasting revenues of CN¥4.36b and earnings per share (EPS) of CN¥1.46 in 2024. Indeed, we can see that sentiment has declined measurably after results came out, with a real cut to revenue estimates and a small dip in EPS estimates to boot.

The consensus price target fell 8.5% to CN¥33.38, with the weaker earnings outlook clearly leading valuation estimates. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Ningbo Haitian Precision MachineryLtd at CN¥35.50 per share, while the most bearish prices it at CN¥31.25. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. It's pretty clear that there is an expectation that Ningbo Haitian Precision MachineryLtd's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 17% growth on an annualised basis. This is compared to a historical growth rate of 25% over the past five years. Compare this to the 480 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 19% per year. So it's pretty clear that, while Ningbo Haitian Precision MachineryLtd'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 Ningbo Haitian Precision MachineryLtd. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Ningbo Haitian Precision MachineryLtd's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Ningbo Haitian Precision MachineryLtd analysts - going out to 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Ningbo Haitian Precision MachineryLtd 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.