Hunan Yuneng New Energy Battery Material Co.,Ltd. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

It's shaping up to be a tough period for Hunan Yuneng New Energy Battery Material Co.,Ltd. (SZSE:301358), which a week ago released some disappointing full-year results that could have a notable impact on how the market views the stock. Results showed a clear earnings miss, with CN¥23b revenue coming in 6.6% lower than what the analystsexpected. Statutory earnings per share (EPS) of CN¥0.78 missed the mark badly, arriving some 26% below what was expected. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Hunan Yuneng New Energy Battery MaterialLtd

Taking into account the latest results, the most recent consensus for Hunan Yuneng New Energy Battery MaterialLtd from ten analysts is for revenues of CN¥32.1b in 2025. If met, it would imply a substantial 42% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 217% to CN¥2.48. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥32.5b and earnings per share (EPS) of CN¥2.50 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.

There were no changes to revenue or earnings estimates or the price target of CN¥58.70, suggesting that the company has met expectations in its recent result. 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 Hunan Yuneng New Energy Battery MaterialLtd, with the most bullish analyst valuing it at CN¥66.60 and the most bearish at CN¥44.08 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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 Hunan Yuneng New Energy Battery MaterialLtd's rate of growth is expected to accelerate meaningfully, with the forecast 42% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 27% 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 Hunan Yuneng New Energy Battery MaterialLtd 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster 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. At Simply Wall St, we have a full range of analyst estimates for Hunan Yuneng New Energy Battery MaterialLtd going out to 2027, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Hunan Yuneng New Energy Battery MaterialLtd (1 is potentially serious) 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.