Chifeng Jilong Gold Mining Co.,Ltd. Beat Revenue Forecasts By 8.2%: Here's What Analysts Are Forecasting Next

Shareholders might have noticed that Chifeng Jilong Gold Mining Co.,Ltd. (SHSE:600988) filed its second-quarter result this time last week. The early response was not positive, with shares down 5.8% to CN¥16.89 in the past week. Results overall were respectable, with statutory earnings of CN¥0.49 per share roughly in line with what the analysts had forecast. Revenues of CN¥2.3b came in 8.2% ahead of analyst predictions. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Chifeng Jilong Gold MiningLtd

Taking into account the latest results, the consensus forecast from Chifeng Jilong Gold MiningLtd's eight analysts is for revenues of CN¥9.24b in 2024. This reflects a notable 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 34% to CN¥0.97. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥8.81b and earnings per share (EPS) of CN¥0.88 in 2024. So it seems there's been a definite increase in optimism about Chifeng Jilong Gold MiningLtd's future following the latest results, with a decent improvement in the earnings per share forecasts in particular.

As a result, it might be a surprise to see thatthe analysts have cut their price target 7.6% to CN¥23.00, which could suggest the forecast improvement in performance is not expected to last. 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. The most optimistic Chifeng Jilong Gold MiningLtd analyst has a price target of CN¥25.00 per share, while the most pessimistic values it at CN¥21.01. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Chifeng Jilong Gold MiningLtd is an easy business to forecast or the the analysts are all using similar assumptions.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Chifeng Jilong Gold MiningLtd's rate of growth is expected to accelerate meaningfully, with the forecast 32% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 9.5% 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 9.5% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Chifeng Jilong Gold MiningLtd 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 Chifeng Jilong Gold MiningLtd following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Chifeng Jilong Gold MiningLtd. Long-term earnings power is much more important than next year's profits. We have forecasts for Chifeng Jilong Gold MiningLtd going out to 2026, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.