Beijing New Building Materials Public Limited Company Just Missed Earnings - But Analysts Have Updated Their Models

The full-year results for Beijing New Building Materials Public Limited Company (SZSE:000786) were released last week, making it a good time to revisit its performance. Revenues of CN¥22b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at CN¥2.09, missing estimates by 5.5%. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Beijing New Building Materials

Taking into account the latest results, the most recent consensus for Beijing New Building Materials from 17 analysts is for revenues of CN¥26.1b in 2024. If met, it would imply a solid 16% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 24% to CN¥2.58. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥25.1b and earnings per share (EPS) of CN¥2.57 in 2024. There doesn't appear to have been a major change in sentiment following the results, other than the slight bump in revenue estimates.

Even though revenue forecasts increased, there was no change to the consensus price target of CN¥36.96, suggesting the analysts are focused on earnings as the driver of value creation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Beijing New Building Materials, with the most bullish analyst valuing it at CN¥47.60 and the most bearish at CN¥31.61 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Beijing New Building Materials' rate of growth is expected to accelerate meaningfully, with the forecast 16% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 13% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 16% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Beijing New Building Materials is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also upgraded their revenue forecasts, although the latest estimates suggest that Beijing New Building Materials will grow in line with the overall 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 Beijing New Building Materials 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 Beijing New Building Materials 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.