Ningbo Boway Alloy Material Company Limited Just Recorded A 8.2% EPS Beat: Here's What Analysts Are Forecasting Next

Ningbo Boway Alloy Material Company Limited (SHSE:601137) last week reported its latest yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. The result was positive overall - although revenues of CN¥18b were in line with what the analysts predicted, Ningbo Boway Alloy Material surprised by delivering a statutory profit of CN¥1.43 per share, modestly greater than expected. 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.

View our latest analysis for Ningbo Boway Alloy Material

After the latest results, the eight analysts covering Ningbo Boway Alloy Material are now predicting revenues of CN¥20.9b in 2024. If met, this would reflect a meaningful 18% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 14% to CN¥1.65. Before this earnings report, the analysts had been forecasting revenues of CN¥20.7b and earnings per share (EPS) of CN¥1.58 in 2024. So the consensus seems to have become somewhat more optimistic on Ningbo Boway Alloy Material's earnings potential following these results.

The consensus price target rose 12% to CN¥20.57, suggesting that higher earnings estimates flow through to the stock's valuation as well. 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 Ningbo Boway Alloy Material, with the most bullish analyst valuing it at CN¥21.14 and the most bearish at CN¥20.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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 period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 18% growth on an annualised basis. That is in line with its 19% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 9.6% per year. So it's pretty clear that Ningbo Boway Alloy Material is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Ningbo Boway Alloy Material'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. 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Ningbo Boway Alloy Material analysts - going out to 2026, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Ningbo Boway Alloy Material , and understanding them should be part of your investment process.

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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.