Beijing New Building Materials Public Limited Company Just Missed EPS By 13%: Here's What Analysts Think Will Happen Next

It's shaping up to be a tough period for Beijing New Building Materials Public Limited Company (SZSE:000786), which a week ago released some disappointing yearly results that could have a notable impact on how the market views the stock. Beijing New Building Materials missed earnings this time around, with CN¥26b revenue coming in 5.3% below what the analysts had modelled. Statutory earnings per share (EPS) of CN¥2.16 also fell short of expectations by 13%. 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.

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After the latest results, the 15 analysts covering Beijing New Building Materials are now predicting revenues of CN¥29.1b in 2025. If met, this would reflect a solid 13% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 27% to CN¥2.74. In the lead-up to this report, the analysts had been modelling revenues of CN¥30.6b and earnings per share (EPS) of CN¥2.85 in 2025. 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.

Check out our latest analysis for Beijing New Building Materials

The analysts made no major changes to their price target of CN¥36.01, suggesting the downgrades are not expected to have a long-term impact on Beijing New Building Materials' valuation. 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. There are some variant perceptions on Beijing New Building Materials, with the most bullish analyst valuing it at CN¥45.00 and the most bearish at CN¥33.07 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 13% growth on an annualised basis. That is in line with its 11% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 13% per year. So although Beijing New Building Materials is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider 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. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Beijing New Building Materials analysts - going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Beijing New Building Materials 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.