Beijing Easpring Material Technology CO.,LTD. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

As you might know, Beijing Easpring Material Technology CO.,LTD. (SZSE:300073) last week released its latest first-quarter, and things did not turn out so great for shareholders. The analysts look to have been far too optimistic in the lead-up to these results, with revenues of (CN¥1.5b) coming in 34% below what they had expected. Statutory earnings per share of CN¥0.22 fell 48% short. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Beijing Easpring Material TechnologyLTD after the latest results.

See our latest analysis for Beijing Easpring Material TechnologyLTD

Following the recent earnings report, the consensus from 14 analysts covering Beijing Easpring Material TechnologyLTD is for revenues of CN¥10.7b in 2024. This implies a chunky 10% decline in revenue compared to the last 12 months. Statutory earnings per share are expected to plunge 48% to CN¥1.64 in the same period. Before this earnings report, the analysts had been forecasting revenues of CN¥16.5b and earnings per share (EPS) of CN¥1.99 in 2024. Indeed, we can see that the analysts are a lot more bearish about Beijing Easpring Material TechnologyLTD's prospects following the latest results, administering a large cut to revenue estimates and slashing their EPS estimates to boot.

The analysts made no major changes to their price target of CN¥45.88, suggesting the downgrades are not expected to have a long-term impact on Beijing Easpring Material TechnologyLTD's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Beijing Easpring Material TechnologyLTD analyst has a price target of CN¥57.00 per share, while the most pessimistic values it at CN¥28.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 14% by the end of 2024. This indicates a significant reduction from annual growth of 43% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 18% annually for the foreseeable future. It's pretty clear that Beijing Easpring Material TechnologyLTD's revenues are expected to perform substantially 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 Beijing Easpring Material TechnologyLTD. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than 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 estimates - from multiple Beijing Easpring Material TechnologyLTD analysts - going out to 2026, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Beijing Easpring Material TechnologyLTD (at least 1 which can't be ignored) , and understanding these should be part of your investment process.

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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.