Goldwind Science And Technology Co., Ltd. Just Missed EPS By 39%: Here's What Analysts Think Will Happen Next

Goldwind Science And Technology Co., Ltd. (SZSE:002202) came out with its full-year results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Statutory earnings per share disappointed, coming in -39% short of expectations, at CN¥0.29. Fortunately revenue performance was a lot stronger at CN¥50b arriving 10% ahead of predictions. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Goldwind Science And Technology

Taking into account the latest results, the most recent consensus for Goldwind Science And Technology from ten analysts is for revenues of CN¥59.9b in 2024. If met, it would imply a solid 19% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 116% to CN¥0.62. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥51.7b and earnings per share (EPS) of CN¥0.65 in 2024. Although revenue sentiment looks to be improving, the analysts have made a small dip in per-share earnings estimates, perhaps acknowledging the investment required to grow the business.

There's been no major changes to the price target of CN¥8.76, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation. 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 Goldwind Science And Technology at CN¥12.39 per share, while the most bearish prices it at CN¥6.50. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. The analysts are definitely expecting Goldwind Science And Technology's growth to accelerate, with the forecast 19% annualised growth to the end of 2024 ranking favourably alongside historical growth of 7.7% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 18% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Goldwind Science And Technology 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 the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider 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 forecasts for Goldwind Science And Technology going out to 2025, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 3 warning signs for Goldwind Science And Technology (1 doesn't sit too well with us!) that you should be aware of.

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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.