Earnings Miss: Zoomlion Heavy Industry Science and Technology Co., Ltd. Missed EPS By 15% And Analysts Are Revising Their Forecasts

As you might know, Zoomlion Heavy Industry Science and Technology Co., Ltd. (SZSE:000157) recently reported its quarterly numbers. It was not a great result overall. Although revenues beat expectations, hitting CN¥12b, statutory earnings missed analyst forecasts by 15%, coming in at just CN¥0.11 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Zoomlion Heavy Industry Science and Technology after the latest results.

Check out our latest analysis for Zoomlion Heavy Industry Science and Technology

Following the latest results, Zoomlion Heavy Industry Science and Technology's twelve analysts are now forecasting revenues of CN¥55.6b in 2024. This would be a solid 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 21% to CN¥0.51. In the lead-up to this report, the analysts had been modelling revenues of CN¥55.8b and earnings per share (EPS) of CN¥0.52 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of CN¥8.31, showing that the business is executing well and in line with expectations. 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 Zoomlion Heavy Industry Science and Technology analyst has a price target of CN¥9.90 per share, while the most pessimistic values it at CN¥6.80. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Zoomlion Heavy Industry Science and Technology shareholders.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Zoomlion Heavy Industry Science and Technology's rate of growth is expected to accelerate meaningfully, with the forecast 20% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 1.3% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 18% per year. Zoomlion Heavy Industry Science and Technology is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at CN¥8.31, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Zoomlion Heavy Industry Science and Technology going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 3 warning signs for Zoomlion Heavy Industry Science and Technology that you need to take into consideration.

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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.