Zangge Mining Company Limited (SZSE:000408) Just Recorded An Earnings Miss And Analysts Are Updating Their Numbers

Zangge Mining Company Limited (SZSE:000408) missed earnings with its latest yearly results, disappointing overly-optimistic forecasters. Earnings fell badly short of analyst estimates, with CN¥5.2b revenues missing by 12%, and statutory earnings per share (EPS) of CN¥2.18 falling short of forecasts by some -13%. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Zangge Mining

Following the latest results, Zangge Mining's four analysts are now forecasting revenues of CN¥7.11b in 2024. This would be a huge 36% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 36% to CN¥2.96. Before this earnings report, the analysts had been forecasting revenues of CN¥6.08b and earnings per share (EPS) of CN¥2.68 in 2024. There has definitely been an improvement in perception after these results, with the analysts noticeably increasing both their earnings and revenue estimates.

Despite these upgrades, the consensus price target fell 20% to CN¥26.10, perhaps signalling that the uplift in performance is not expected to last.

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. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 36% growth on an annualised basis. That is in line with its 31% 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 18% per year. So although Zangge Mining is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Zangge Mining's earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business 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 Zangge Mining's future valuation.

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 Zangge Mining analysts - going out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Zangge Mining that you need to be mindful 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.