Chongqing Fuling Zhacai Group Co., Ltd. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Chongqing Fuling Zhacai Group Co., Ltd. (SZSE:002507) missed earnings with its latest yearly results, disappointing overly-optimistic forecasters. Results look to have been somewhat negative - revenue fell 4.5% short of analyst estimates at CN¥2.4b, and statutory earnings of CN¥0.69 per share missed forecasts by 7.2%. 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'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 consensus forecast from Chongqing Fuling Zhacai Group's twelve analysts is for revenues of CN¥2.55b in 2025. This reflects a modest 6.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 12% to CN¥0.77. Before this earnings report, the analysts had been forecasting revenues of CN¥2.56b and earnings per share (EPS) of CN¥0.80 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

See our latest analysis for Chongqing Fuling Zhacai Group

It might be a surprise to learn that the consensus price target was broadly unchanged at CN¥15.16, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Chongqing Fuling Zhacai Group at CN¥18.55 per share, while the most bearish prices it at CN¥12.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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 clear from the latest estimates that Chongqing Fuling Zhacai Group's rate of growth is expected to accelerate meaningfully, with the forecast 6.7% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 3.2% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 9.4% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Chongqing Fuling Zhacai Group is expected to grow slower 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 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¥15.16, 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 Chongqing Fuling Zhacai Group going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Chongqing Fuling Zhacai Group has 1 warning sign we think you should be aware of.

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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.