Revenue Miss: Nanjing Tanker Corporation Fell 10% Short Of Analyst Revenue Estimates And Analysts Have Been Revising Their Models

As you might know, Nanjing Tanker Corporation (SHSE:601975) last week released its latest annual, and things did not turn out so great for shareholders. It looks like a weak result overall, with both revenues and earnings falling well short of analyst predictions. Revenues of CN¥6.5b missed by 10%, and statutory earnings per share of CN¥0.40 fell short of forecasts by 8.2%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Taking into account the latest results, the most recent consensus for Nanjing Tanker from three analysts is for revenues of CN¥6.72b in 2025. If met, it would imply an okay 3.8% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to reduce 5.0% to CN¥0.38 in the same period. Before this earnings report, the analysts had been forecasting revenues of CN¥7.51b and earnings per share (EPS) of CN¥0.46 in 2025. It looks like sentiment has declined substantially in the aftermath of these results, with a real cut to revenue estimates and a substantial drop in earnings per share numbers as well.

View our latest analysis for Nanjing Tanker

The consensus price target fell 16% to CN¥3.75, with the weaker earnings outlook clearly leading valuation estimates. 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. There are some variant perceptions on Nanjing Tanker, with the most bullish analyst valuing it at CN¥4.20 and the most bearish at CN¥3.80 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Nanjing Tanker's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.8% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.5% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Nanjing Tanker.

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. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Nanjing Tanker's future valuation.

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 Nanjing Tanker going out to 2027, and you can see them free on our platform here..

We also provide an overview of the Nanjing Tanker Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.