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

Investors in Zhejiang Supor Co., Ltd. (SZSE:002032) had a good week, as its shares rose 3.8% to close at CN¥50.46 following the release of its quarterly 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Zhejiang Supor

Taking into account the latest results, Zhejiang Supor's 16 analysts currently expect revenues in 2024 to be CN¥22.6b, approximately in line with the last 12 months. Per-share earnings are expected to rise 2.9% to CN¥2.89. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥22.6b and earnings per share (EPS) of CN¥2.90 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of CN¥58.03, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Zhejiang Supor at CN¥64.02 per share, while the most bearish prices it at CN¥50.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Zhejiang Supor's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 2.2% growth on an annualised basis. This is compared to a historical growth rate of 2.9% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.7% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Zhejiang Supor.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at CN¥58.03, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. 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..

It is also worth noting that we have found 1 warning sign for Zhejiang Supor that you need to take into consideration.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com