Xinjiang Qingsong Building Materials and Chemicals(Group)Co,Ltd. Just Missed Earnings - But Analysts Have Updated Their Models

Xinjiang Qingsong Building Materials and Chemicals(Group)Co,Ltd. (SHSE:600425) just released its latest yearly report and things are not looking great. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at CN¥4.5b, statutory earnings missed forecasts by an incredible 24%, coming in at just CN¥0.29 per share. This is an important time for investors, as they can track a company's performance in its report, look at what expert is 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 analyst has changed their earnings models, following these results.

See our latest analysis for Xinjiang Qingsong Building Materials and Chemicals(Group)CoLtd

Taking into account the latest results, the current consensus from Xinjiang Qingsong Building Materials and Chemicals(Group)CoLtd's sole analyst is for revenues of CN¥4.90b in 2024. This would reflect a meaningful 9.1% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 32% to CN¥0.38. In the lead-up to this report, the analyst had been modelling revenues of CN¥5.44b and earnings per share (EPS) of CN¥0.47 in 2024. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.

The consensus price target fell 20% to CN¥5.00, with the weaker earnings outlook clearly leading valuation estimates.

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. We can infer from the latest estimates that forecasts expect a continuation of Xinjiang Qingsong Building Materials and Chemicals(Group)CoLtd'shistorical trends, as the 9.1% annualised revenue growth to the end of 2024 is roughly in line with the 10% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 10% per year. So although Xinjiang Qingsong Building Materials and Chemicals(Group)CoLtd is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Xinjiang Qingsong Building Materials and Chemicals(Group)CoLtd'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. We have analyst estimates for Xinjiang Qingsong Building Materials and Chemicals(Group)CoLtd going out as far as 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Xinjiang Qingsong Building Materials and Chemicals(Group)CoLtd 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.