Peric Special Gases Co., Ltd. Just Missed Earnings And Its Revenue Numbers Were Weaker Than Expected

As you might know, Peric Special Gases Co., Ltd. (SHSE:688146) last week released its latest annual, and things did not turn out so great for shareholders. Earnings missed the mark, with revenues of CN¥1.6b coming up 28% short, and statutory earnings per share of CN¥0.67 missing estimates by 15%. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Peric Special Gases

Taking into account the latest results, the consensus forecast from Peric Special Gases' three analysts is for revenues of CN¥1.97b in 2024. This reflects a sizeable 22% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 20% to CN¥0.76. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥2.72b and earnings per share (EPS) of CN¥0.96 in 2024. Indeed, we can see that the analysts are a lot more bearish about Peric Special Gases' prospects following the latest results, administering a pretty serious reduction to revenue estimates and slashing their EPS estimates to boot.

It'll come as no surprise then, to learn that the analysts have cut their price target 27% to CN¥33.00.

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 Peric Special Gases' growth to accelerate, with the forecast 22% annualised growth to the end of 2024 ranking favourably alongside historical growth of 9.8% per annum over the past three years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 18% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Peric Special Gases is expected to grow at about the same rate as the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Peric Special Gases. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Peric Special Gases' future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Peric Special Gases going out to 2025, 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 1 warning sign with Peric Special Gases , and understanding this 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.