Revenue Beat: Windey Energy Technology Group Co., Ltd. Exceeded Revenue Forecasts By 8.4% And Analysts Are Updating Their Estimates

Shareholders might have noticed that Windey Energy Technology Group Co., Ltd. (SZSE:300772) filed its yearly result this time last week. The early response was not positive, with shares down 3.7% to CN¥12.55 in the past week. It was a workmanlike result, with revenues of CN¥22b coming in 8.4% ahead of expectations, and statutory earnings per share of CN¥0.67, in line with analyst appraisals. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Windey Energy Technology Group after the latest results.

Following the latest results, Windey Energy Technology Group's four analysts are now forecasting revenues of CN¥30.8b in 2025. This would be a substantial 39% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 47% to CN¥0.97. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥25.3b and earnings per share (EPS) of CN¥1.00 in 2025. 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.

Check out our latest analysis for Windey Energy Technology Group

The analysts also cut Windey Energy Technology Group's price target 7.6% to CN¥15.89, implying that lower forecast earnings are expected to have a more negative impact than can be offset by the increase in revenue.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Windey Energy Technology Group's rate of growth is expected to accelerate meaningfully, with the forecast 39% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 20% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 17% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Windey Energy Technology Group to grow faster 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 Windey Energy Technology Group. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. 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 in mind, we wouldn't be too quick to come to a conclusion on Windey Energy Technology Group. Long-term earnings power is much more important than next year's profits. We have forecasts for Windey Energy Technology Group going out to 2026, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.