The Anhui Gujing Distillery Co., Ltd. (SZSE:000596) First-Quarter Results Are Out And Analysts Have Published New Forecasts

Investors in Anhui Gujing Distillery Co., Ltd. (SZSE:000596) had a good week, as its shares rose 3.4% to close at CN¥271 following the release of its quarterly results. The results were positive, with revenue coming in at CN¥8.3b, beating analyst expectations by 4.0%. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Anhui Gujing Distillery

Taking into account the latest results, the consensus forecast from Anhui Gujing Distillery's 17 analysts is for revenues of CN¥24.8b in 2024. This reflects a solid 13% improvement in revenue compared to the last 12 months. Per-share earnings are expected to swell 16% to CN¥11.16. Before this earnings report, the analysts had been forecasting revenues of CN¥24.6b and earnings per share (EPS) of CN¥10.70 in 2024. So the consensus seems to have become somewhat more optimistic on Anhui Gujing Distillery's earnings potential following these results.

The consensus price target was unchanged at CN¥294, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Anhui Gujing Distillery at CN¥340 per share, while the most bearish prices it at CN¥236. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Anhui Gujing Distillery shareholders.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Anhui Gujing Distillery'shistorical trends, as the 18% annualised revenue growth to the end of 2024 is roughly in line with the 18% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 13% annually. So although Anhui Gujing Distillery is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Anhui Gujing Distillery following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Anhui Gujing Distillery. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Anhui Gujing Distillery going out to 2026, and you can see them free on our platform here..

You still need to take note of risks, for example - Anhui Gujing Distillery has 2 warning signs (and 1 which is significant) we think you should know about.

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.