Shenzhen Envicool Technology Co., Ltd. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Shenzhen Envicool Technology Co., Ltd. (SZSE:002837) just released its latest yearly report and things are not looking great. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at CN¥3.5b, statutory earnings missed forecasts by 12%, coming in at just CN¥0.61 per share. 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.

Check out our latest analysis for Shenzhen Envicool Technology

Following the latest results, Shenzhen Envicool Technology's eleven analysts are now forecasting revenues of CN¥5.09b in 2024. This would be a substantial 44% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 60% to CN¥0.97. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥5.17b and earnings per share (EPS) of CN¥0.96 in 2024. 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.

The consensus price target fell 5.1% to CN¥34.08, suggesting that the analysts might have been a bit enthusiastic in their previous valuation - or they were expecting the company to provide stronger guidance in the annual results. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Shenzhen Envicool Technology, with the most bullish analyst valuing it at CN¥41.00 and the most bearish at CN¥26.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Shenzhen Envicool Technology's past performance and to peers in the same industry. It's clear from the latest estimates that Shenzhen Envicool Technology's rate of growth is expected to accelerate meaningfully, with the forecast 44% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 24% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 17% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Shenzhen Envicool Technology to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than 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 Shenzhen Envicool Technology's future valuation.

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 Shenzhen Envicool Technology going out to 2026, and you can see them free on our platform here.

You can also see our analysis of Shenzhen Envicool Technology's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.