Yantai Jereh Oilfield Services Group Co., Ltd. Just Beat Revenue Estimates By 5.2%

It's been a pretty great week for Yantai Jereh Oilfield Services Group Co., Ltd. (SZSE:002353) shareholders, with its shares surging 11% to CN¥32.89 in the week since its latest full-year results. It was a workmanlike result, with revenues of CN¥14b coming in 5.2% ahead of expectations, and statutory earnings per share of CN¥2.41, in line with analyst appraisals. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Yantai Jereh Oilfield Services Group

After the latest results, the 13 analysts covering Yantai Jereh Oilfield Services Group are now predicting revenues of CN¥15.2b in 2024. If met, this would reflect a meaningful 9.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to swell 18% to CN¥2.85. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥15.2b and earnings per share (EPS) of CN¥2.88 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at CN¥39.66. 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 Yantai Jereh Oilfield Services Group at CN¥49.00 per share, while the most bearish prices it at CN¥20.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Yantai Jereh Oilfield Services Group's past performance and to peers in the same industry. We would highlight that Yantai Jereh Oilfield Services Group's revenue growth is expected to slow, with the forecast 9.1% annualised growth rate until the end of 2024 being well below the historical 19% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 14% annually. Factoring in the forecast slowdown in growth, it seems obvious that Yantai Jereh Oilfield Services Group is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share 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¥39.66, with the latest estimates not enough to have an impact on their price targets.

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 forecasts for Yantai Jereh Oilfield Services Group going out to 2026, and you can see them free on our platform here.

Even so, be aware that Yantai Jereh Oilfield Services Group is showing 1 warning sign in our investment analysis , you should know about...

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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.