Earnings Miss: Beijing Originwater Technology Co., Ltd. Missed EPS By 18% And Analysts Are Revising Their Forecasts

Beijing Originwater Technology Co., Ltd. (SZSE:300070) just released its latest yearly report and things are not looking great. Beijing Originwater Technology missed earnings this time around, with CN¥9.0b revenue coming in 4.4% below what the analysts had modelled. Statutory earnings per share (EPS) of CN¥0.21 also fell short of expectations by 18%. 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.

View our latest analysis for Beijing Originwater Technology

Following the latest results, Beijing Originwater Technology's dual analysts are now forecasting revenues of CN¥10.3b in 2024. This would be a notable 15% improvement in revenue compared to the last 12 months. Per-share earnings are expected to step up 18% to CN¥0.25. In the lead-up to this report, the analysts had been modelling revenues of CN¥10.5b and earnings per share (EPS) of CN¥0.34 in 2024. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a pretty serious reduction to earnings per share numbers.

It'll come as no surprise then, to learn that the analysts have cut their price target 6.9% to CN¥6.05.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Beijing Originwater Technology is forecast to grow faster in the future than it has in the past, with revenues expected to display 15% annualised growth until the end of 2024. If achieved, this would be a much better result than the 7.4% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 20% per year. Although Beijing Originwater Technology's revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader 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 Originwater Technology. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse 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.

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 analyst estimates for Beijing Originwater Technology going out as far as 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Beijing Originwater Technology (1 shouldn't be ignored) 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.