Zhejiang Weixing New Building Materials Co., Ltd. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Zhejiang Weixing New Building Materials Co., Ltd. (SZSE:002372) missed earnings with its latest yearly results, disappointing overly-optimistic forecasters. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at CN¥6.3b, statutory earnings missed forecasts by 11%, coming in at just CN¥0.61 per share. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Zhejiang Weixing New Building Materials

Taking into account the latest results, Zhejiang Weixing New Building Materials' 13 analysts currently expect revenues in 2025 to be CN¥6.28b, approximately in line with the last 12 months. Statutory per share are forecast to be CN¥0.60, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of CN¥6.99b and earnings per share (EPS) of CN¥0.83 in 2025. Indeed, we can see that the analysts are a lot more bearish about Zhejiang Weixing New Building Materials' prospects following the latest results, administering a real cut to revenue estimates and slashing their EPS estimates to boot.

The consensus price target fell 9.3% to CN¥14.61, with the weaker earnings outlook clearly leading valuation estimates. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Zhejiang Weixing New Building Materials, with the most bullish analyst valuing it at CN¥18.55 and the most bearish at CN¥10.50 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Zhejiang Weixing New Building Materials shareholders.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Zhejiang Weixing New Building Materials' revenue growth is expected to slow, with the forecast 0.1% annualised growth rate until the end of 2025 being well below the historical 7.3% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 13% annually. Factoring in the forecast slowdown in growth, it seems obvious that Zhejiang Weixing New Building Materials is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Zhejiang Weixing New Building Materials. 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. 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 estimates - from multiple Zhejiang Weixing New Building Materials analysts - going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Zhejiang Weixing New Building Materials 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.