Earnings Report: Guizhou Space Appliance Co., LTD Missed Revenue Estimates By 16%

The analysts might have been a bit too bullish on Guizhou Space Appliance Co., LTD (SZSE:002025), given that the company fell short of expectations when it released its full-year results last week. Guizhou Space Appliance reported an earnings miss, with CN¥6.2b revenues falling 16% short of analyst models, and statutory earnings per share (EPS) of CN¥1.65 also coming in slightly below expectations. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Guizhou Space Appliance

After the latest results, the five analysts covering Guizhou Space Appliance are now predicting revenues of CN¥7.29b in 2024. If met, this would reflect a notable 17% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 27% to CN¥2.09. In the lead-up to this report, the analysts had been modelling revenues of CN¥9.52b and earnings per share (EPS) of CN¥2.33 in 2024. It looks like sentiment has declined substantially in the aftermath of these results, with a large cut to revenue estimates and a real cut to earnings per share numbers as well.

It'll come as no surprise then, to learn that the analysts have cut their price target 5.9% to CN¥60.84. 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 Guizhou Space Appliance analyst has a price target of CN¥78.00 per share, while the most pessimistic values it at CN¥47.74. 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. We can infer from the latest estimates that forecasts expect a continuation of Guizhou Space Appliance'shistorical trends, as the 17% annualised revenue growth to the end of 2024 is roughly in line with the 17% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 21% per year. So it's pretty clear that Guizhou Space Appliance is expected to grow slower than similar companies in the same industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Guizhou Space Appliance. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Guizhou Space Appliance's future valuation.

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 Guizhou Space Appliance analysts - going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Guizhou Space Appliance that we have uncovered.

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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.