Zhejiang Supor Co., Ltd. Just Beat Revenue Estimates By 6.3%

Zhejiang Supor Co., Ltd. (SZSE:002032) shareholders are probably feeling a little disappointed, since its shares fell 3.8% to CN¥58.26 in the week after its latest first-quarter results. It was a pretty mixed result, with revenues beating expectations to hit CN¥5.4b. Statutory earnings fell 3.7% short of analyst forecasts, reaching CN¥0.59 per share. 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 Zhejiang Supor after the latest results.

See our latest analysis for Zhejiang Supor

Taking into account the latest results, the current consensus from Zhejiang Supor's 18 analysts is for revenues of CN¥22.8b in 2024. This would reflect a satisfactory 5.1% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 5.9% to CN¥2.94. Before this earnings report, the analysts had been forecasting revenues of CN¥22.7b and earnings per share (EPS) of CN¥2.92 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at CN¥60.85. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Zhejiang Supor at CN¥64.02 per share, while the most bearish prices it at CN¥53.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Zhejiang Supor's rate of growth is expected to accelerate meaningfully, with the forecast 6.9% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 2.8% 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 9.6% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Zhejiang Supor is expected to grow slower 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, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Zhejiang Supor's revenue is expected to perform worse than the wider industry. The consensus price target held steady at CN¥60.85, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Zhejiang Supor going out to 2026, and you can see them free on our platform here..

You still need to take note of risks, for example - Zhejiang Supor has 1 warning sign we think 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.