Suzhou Gold Mantis Construction Decoration Co., Ltd. Just Missed Earnings - But Analysts Have Updated Their Models

Suzhou Gold Mantis Construction Decoration Co., Ltd. (SZSE:002081) missed earnings with its latest second-quarter results, disappointing overly-optimistic forecasters. The analysts look to have been far too optimistic in the lead-up to these results, with revenues of (CN¥4.8b) coming in 38% below what they had expected. Statutory earnings per share of CN¥0.05 fell 66% short. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Suzhou Gold Mantis Construction Decoration

Following the recent earnings report, the consensus from two analysts covering Suzhou Gold Mantis Construction Decoration is for revenues of CN¥18.1b in 2024. This implies a measurable 4.0% decline in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 4.4% to CN¥0.30. In the lead-up to this report, the analysts had been modelling revenues of CN¥21.3b and earnings per share (EPS) of CN¥0.39 in 2024. Indeed, we can see that the analysts are a lot more bearish about Suzhou Gold Mantis Construction Decoration's prospects following the latest results, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

The consensus price target fell 6.6% to CN¥4.21, with the weaker earnings outlook clearly leading valuation estimates.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2024 compared to the historical decline of 10% per annum over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 11% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect Suzhou Gold Mantis Construction Decoration to suffer worse than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Suzhou Gold Mantis Construction Decoration. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Suzhou Gold Mantis Construction Decoration going out as far as 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Suzhou Gold Mantis Construction Decoration (of which 1 is a bit unpleasant!) 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.