Zhejiang Weixing New Building Materials Co., Ltd. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Zhejiang Weixing New Building Materials Co., Ltd. (SZSE:002372) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Revenues CN¥1.4b disappointed slightly, at5.0% below what the analysts had predicted. Profits were a relative bright spot, with statutory per-share earnings of CN¥0.18 coming in 14% above what was anticipated. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. 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 Zhejiang Weixing New Building Materials

Taking into account the latest results, the consensus forecast from Zhejiang Weixing New Building Materials' 16 analysts is for revenues of CN¥7.36b in 2025. This reflects a decent 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 20% to CN¥0.90. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥7.41b and earnings per share (EPS) of CN¥0.91 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

With no major changes to earnings forecasts, the consensus price target fell 5.1% to CN¥16.24, suggesting that the analysts might have previously been hoping for an earnings upgrade. 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. Currently, the most bullish analyst values Zhejiang Weixing New Building Materials at CN¥23.00 per share, while the most bearish prices it at CN¥11.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. The analysts are definitely expecting Zhejiang Weixing New Building Materials' growth to accelerate, with the forecast 12% annualised growth to the end of 2025 ranking favourably alongside historical growth of 8.2% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 14% annually. Zhejiang Weixing New Building Materials is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Zhejiang Weixing New Building Materials' future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Zhejiang Weixing New Building Materials. Long-term earnings power is much more important than next year's profits. We have forecasts for Zhejiang Weixing New Building Materials going out to 2026, and you can see them free on our platform here.

Even so, be aware that Zhejiang Weixing New Building Materials is showing 1 warning sign in our investment analysis , 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.