Tangshan Jidong Cement Co.,Ltd. Just Missed Earnings With A Surprise Loss - Here Are Analysts Latest Forecasts

Shareholders might have noticed that Tangshan Jidong Cement Co.,Ltd. (SZSE:000401) filed its full-year result this time last week. The early response was not positive, with shares down 3.8% to CN¥5.36 in the past week. It was a pretty negative result overall, with revenues of CN¥28b missing analyst predictions by 2.0%. Worse, the business reported a statutory loss of CN¥0.56 per share, a substantial decline on analyst expectations of a profit. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Tangshan Jidong CementLtd

Taking into account the latest results, Tangshan Jidong CementLtd's four analysts currently expect revenues in 2024 to be CN¥28.6b, approximately in line with the last 12 months. Tangshan Jidong CementLtd is also expected to turn profitable, with statutory earnings of CN¥0.46 per share. Before this earnings report, the analysts had been forecasting revenues of CN¥31.9b and earnings per share (EPS) of CN¥0.43 in 2024. Indeed we can see that the consensus opinion has undergone some fundamental changes after the latest results, with a substantial drop in revenues at the same time as boosting EPS forecasts.

The analysts have cut their price target 17% to CN¥6.36per share, suggesting that the declining revenue was a more crucial indicator than the expected improvement in earnings. 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. The most optimistic Tangshan Jidong CementLtd analyst has a price target of CN¥8.39 per share, while the most pessimistic values it at CN¥4.10. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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. It's also worth noting that the years of declining revenue look to have come to an end, with the forecast stauing flat to the end of 2024. Historically, Tangshan Jidong CementLtd's top line has shrunk approximately 0.6% annually 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 revenue grow 9.4% per year. Although Tangshan Jidong CementLtd's revenues are expected to improve, it seems that it is still expected to grow slower than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Tangshan Jidong CementLtd following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Even so, earnings per share are more important to the intrinsic value of the business. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Tangshan Jidong CementLtd 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.