CN¥6.62: That's What Analysts Think Tangshan Jidong Cement Co.,Ltd. (SZSE:000401) Is Worth After Its Latest Results

It's shaping up to be a tough period for Tangshan Jidong Cement Co.,Ltd. (SZSE:000401), which a week ago released some disappointing first-quarter results that could have a notable impact on how the market views the stock. It definitely looks like a negative result overall with revenues falling 18% short of analyst estimates at CN¥3.3b. Statutory losses were CN¥0.41 per share, 275% bigger than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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 Tangshan Jidong CementLtd

Following the latest results, Tangshan Jidong CementLtd's four analysts are now forecasting revenues of CN¥28.2b in 2024. This would be a notable 13% improvement in revenue compared to the last 12 months. Tangshan Jidong CementLtd is also expected to turn profitable, with statutory earnings of CN¥0.10 per share. Before this earnings report, the analysts had been forecasting revenues of CN¥28.6b and earnings per share (EPS) of CN¥0.11 in 2024. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.

It might be a surprise to learn that the consensus price target fell 5.3% to CN¥6.62, with the analysts clearly linking lower forecast earnings to the performance of the stock price. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Tangshan Jidong CementLtd, with the most bullish analyst valuing it at CN¥8.39 and the most bearish at CN¥5.47 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. For example, we noticed that Tangshan Jidong CementLtd's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 18% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 3.8% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 8.2% per year. Not only are Tangshan Jidong CementLtd's revenues expected to improve, it seems that the analysts are also expecting it 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than 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 Tangshan Jidong CementLtd's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Tangshan Jidong CementLtd. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Tangshan Jidong CementLtd analysts - going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Tangshan Jidong CementLtd that we have uncovered.

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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.