Earnings Miss: Shandong Gold Mining Co., Ltd. Missed EPS By 24% And Analysts Are Revising Their Forecasts

As you might know, Shandong Gold Mining Co., Ltd. (SHSE:600547) recently reported its full-year numbers. Statutory earnings per share fell badly short of expectations, coming in at CN¥0.57, some 24% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at CN¥83b. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Shandong Gold Mining after the latest results.

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Taking into account the latest results, the most recent consensus for Shandong Gold Mining from twelve analysts is for revenues of CN¥94.1b in 2025. If met, it would imply a solid 14% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 70% to CN¥1.12. Before this earnings report, the analysts had been forecasting revenues of CN¥93.2b and earnings per share (EPS) of CN¥1.10 in 2025. So the consensus seems to have become somewhat more optimistic on Shandong Gold Mining's earnings potential following these results.

See our latest analysis for Shandong Gold Mining

There's been no major changes to the consensus price target of CN¥31.78, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's 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. There are some variant perceptions on Shandong Gold Mining, with the most bullish analyst valuing it at CN¥38.20 and the most bearish at CN¥22.85 per share. 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 Shandong Gold Mining shareholders.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Shandong Gold Mining's growth to accelerate, with the forecast 14% annualised growth to the end of 2025 ranking favourably alongside historical growth of 6.7% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 10% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Shandong Gold Mining to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Shandong Gold Mining's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at CN¥31.78, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Shandong Gold Mining going out to 2027, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 2 warning signs for Shandong Gold Mining 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.