Shan Xi Hua Yang Group New Energy Co.,Ltd. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

As you might know, Shan Xi Hua Yang Group New Energy Co.,Ltd. (SHSE:600348) last week released its latest annual, and things did not turn out so great for shareholders. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at CN¥29b, statutory earnings missed forecasts by 12%, coming in at just CN¥1.44 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Shan Xi Hua Yang Group New EnergyLtd

Following the recent earnings report, the consensus from three analysts covering Shan Xi Hua Yang Group New EnergyLtd is for revenues of CN¥25.6b in 2024. This implies an uneasy 10% decline in revenue compared to the last 12 months. Statutory earnings per share are expected to sink 18% to CN¥1.18 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥32.4b and earnings per share (EPS) of CN¥1.68 in 2024. Indeed, we can see that the analysts are a lot more bearish about Shan Xi Hua Yang Group New EnergyLtd's prospects following the latest results, administering a pretty serious reduction to revenue estimates and slashing their EPS estimates to boot.

What's most unexpected is that the consensus price target rose 15% to CN¥13.00, strongly implying the downgrade to forecasts is not expected to be more than a temporary blip.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 10% by the end of 2024. This indicates a significant reduction from annual growth of 0.6% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.2% per year. It's pretty clear that Shan Xi Hua Yang Group New EnergyLtd's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 Shan Xi Hua Yang Group New EnergyLtd going out to 2026, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with Shan Xi Hua Yang Group New EnergyLtd .

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

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.