Here's What Analysts Are Forecasting For AVIC Xi'an Aircraft Industry Group Company Ltd. (SZSE:000768) Following Its Earnings Miss

The analysts might have been a bit too bullish on AVIC Xi'an Aircraft Industry Group Company Ltd. (SZSE:000768), given that the company fell short of expectations when it released its yearly results last week. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at CN¥40b, statutory earnings missed forecasts by 11%, coming in at just CN¥0.31 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for AVIC Xi'an Aircraft Industry Group

Taking into account the latest results, the consensus forecast from AVIC Xi'an Aircraft Industry Group's seven analysts is for revenues of CN¥51.8b in 2024. This reflects a huge 28% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 55% to CN¥0.48. Before this earnings report, the analysts had been forecasting revenues of CN¥53.0b and earnings per share (EPS) of CN¥0.49 in 2024. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the CN¥30.07 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the AVIC Xi'an Aircraft Industry Group's past performance and to peers in the same industry. The analysts are definitely expecting AVIC Xi'an Aircraft Industry Group's growth to accelerate, with the forecast 28% annualised growth to the end of 2024 ranking favourably alongside historical growth of 3.6% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 20% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that AVIC Xi'an Aircraft Industry Group 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. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will 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.

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 estimates - from multiple AVIC Xi'an Aircraft Industry Group analysts - going out to 2026, and you can see them free on our platform here.

We also provide an overview of the AVIC Xi'an Aircraft Industry Group Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.