Sinotruk Jinan Truck Co.,Ltd Beat Revenue Forecasts By 58%: Here's What Analysts Are Forecasting Next

As you might know, Sinotruk Jinan Truck Co.,Ltd (SZSE:000951) recently reported its quarterly numbers. Revenues came in at CN¥11b, greatly exceeding expectations even though statutory earnings per share (EPS) of CN¥0.23 missed forecasts by 4.7%. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Sinotruk Jinan TruckLtd

Taking into account the latest results, the consensus forecast from Sinotruk Jinan TruckLtd's six analysts is for revenues of CN¥51.7b in 2024. This reflects a decent 17% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 23% to CN¥1.19. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥52.4b and earnings per share (EPS) of CN¥1.25 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

Despite cutting their earnings forecasts,the analysts have lifted their price target 6.6% to CN¥20.42, suggesting that these impacts are not expected to weigh on the stock's value in the long term. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Sinotruk Jinan TruckLtd at CN¥22.50 per share, while the most bearish prices it at CN¥18.45. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Sinotruk Jinan TruckLtd is an easy business to forecast or the the analysts are all using similar assumptions.

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. For example, we noticed that Sinotruk Jinan TruckLtd's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 23% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 4.5% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 18% annually. Not only are Sinotruk Jinan TruckLtd's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 Sinotruk Jinan TruckLtd 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 Sinotruk Jinan TruckLtd 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.