Anhui Wanwei Updated High-Tech Material Industry Co.,Ltd Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Anhui Wanwei Updated High-Tech Material Industry Co.,Ltd (SHSE:600063) just released its latest quarterly report and things are not looking great. The analysts look to have been far too optimistic in the lead-up to these results, with revenues of (CN¥1.8b) coming in 31% below what they had expected. Statutory earnings per share of CN¥0.022 fell 76% short. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Anhui Wanwei Updated High-Tech Material IndustryLtd

Following the latest results, Anhui Wanwei Updated High-Tech Material IndustryLtd's dual analysts are now forecasting revenues of CN¥8.86b in 2024. This would be a meaningful 18% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 393% to CN¥0.31. Before this earnings report, the analysts had been forecasting revenues of CN¥9.04b and earnings per share (EPS) of CN¥0.30 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 8.4% to CN¥5.21.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Anhui Wanwei Updated High-Tech Material IndustryLtd's past performance and to peers in the same industry. The analysts are definitely expecting Anhui Wanwei Updated High-Tech Material IndustryLtd's growth to accelerate, with the forecast 25% annualised growth to the end of 2024 ranking favourably alongside historical growth of 6.5% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Anhui Wanwei Updated High-Tech Material IndustryLtd is expected to grow much faster than its 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 Wanwei Updated High-Tech Material IndustryLtd following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Anhui Wanwei Updated High-Tech Material IndustryLtd. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Anhui Wanwei Updated High-Tech Material IndustryLtd going out as far as 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 3 warning signs for Anhui Wanwei Updated High-Tech Material IndustryLtd that you need to be mindful 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.