Earnings Miss: Ningxia Baofeng Energy Group Co., Ltd. Missed EPS By 7.6% And Analysts Are Revising Their Forecasts

As you might know, Ningxia Baofeng Energy Group Co., Ltd. (SHSE:600989) last week released its latest full-year, and things did not turn out so great for shareholders. Ningxia Baofeng Energy Group missed analyst forecasts, with revenues of CN¥29b and statutory earnings per share (EPS) of CN¥0.77, falling short by 4.9% and 7.6% respectively. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Ningxia Baofeng Energy Group

Taking into account the latest results, the consensus forecast from Ningxia Baofeng Energy Group's ten analysts is for revenues of CN¥39.0b in 2024. This reflects a substantial 34% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 55% to CN¥1.20. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥39.6b and earnings per share (EPS) of CN¥1.23 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

The consensus price target held steady at CN¥18.00, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. The most optimistic Ningxia Baofeng Energy Group analyst has a price target of CN¥19.89 per share, while the most pessimistic values it at CN¥16.02. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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 Ningxia Baofeng Energy Group's growth to accelerate, with the forecast 34% annualised growth to the end of 2024 ranking favourably alongside historical growth of 19% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 17% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Ningxia Baofeng Energy Group to grow faster 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 Ningxia Baofeng Energy Group going out to 2026, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Ningxia Baofeng Energy Group that 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.