Western Mining Co.,Ltd. (SHSE:601168) Just Released Its Third-Quarter Earnings: Here's What Analysts Think

Investors in Western Mining Co.,Ltd. (SHSE:601168) had a good week, as its shares rose 3.9% to close at CN¥18.30 following the release of its third-quarter results. It was a workmanlike result, with revenues of CN¥12b coming in 4.0% ahead of expectations, and statutory earnings per share of CN¥1.17, in line with analyst appraisals. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Western MiningLtd

After the latest results, the nine analysts covering Western MiningLtd are now predicting revenues of CN¥51.1b in 2025. If met, this would reflect a decent 8.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 31% to CN¥1.83. In the lead-up to this report, the analysts had been modelling revenues of CN¥50.9b and earnings per share (EPS) of CN¥1.78 in 2025. So the consensus seems to have become somewhat more optimistic on Western MiningLtd's earnings potential following these results.

The consensus price target was unchanged at CN¥21.59, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 Western MiningLtd, with the most bullish analyst valuing it at CN¥25.50 and the most bearish at CN¥17.90 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Western MiningLtd's revenue growth is expected to slow, with the forecast 6.5% annualised growth rate until the end of 2025 being well below the historical 10% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.7% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Western MiningLtd.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Western MiningLtd's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Western MiningLtd's revenue is expected to perform worse 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Western MiningLtd. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Western MiningLtd analysts - 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 Western MiningLtd 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.