Pangang Group Vanadium & Titanium Resources Co., Ltd. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

The analysts might have been a bit too bullish on Pangang Group Vanadium & Titanium Resources Co., Ltd. (SZSE:000629), given that the company fell short of expectations when it released its yearly results last week. Results showed a clear earnings miss, with CN¥14b revenue coming in 8.2% lower than what the analystsexpected. Statutory earnings per share (EPS) of CN¥0.12 missed the mark badly, arriving some 29% below what was expected. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Pangang Group Vanadium & Titanium Resources

Taking into account the latest results, the consensus forecast from Pangang Group Vanadium & Titanium Resources' three analysts is for revenues of CN¥15.2b in 2024. This reflects a reasonable 5.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 23% to CN¥0.14. In the lead-up to this report, the analysts had been modelling revenues of CN¥16.9b and earnings per share (EPS) of CN¥0.20 in 2024. Indeed, we can see that the analysts are a lot more bearish about Pangang Group Vanadium & Titanium Resources' prospects following the latest results, administering a real cut to revenue estimates and slashing their EPS estimates to boot.

The consensus price target fell 14% to CN¥3.67, with the weaker earnings outlook clearly leading valuation estimates. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Pangang Group Vanadium & Titanium Resources analyst has a price target of CN¥4.50 per share, while the most pessimistic values it at CN¥2.84. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Pangang Group Vanadium & Titanium Resources' past performance and to peers in the same industry. The analysts are definitely expecting Pangang Group Vanadium & Titanium Resources' growth to accelerate, with the forecast 5.9% annualised growth to the end of 2024 ranking favourably alongside historical growth of 1.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 10% annually. So it's clear that despite the acceleration in growth, Pangang Group Vanadium & Titanium Resources is expected to grow meaningfully slower than the industry average.

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. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse 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 Pangang Group Vanadium & Titanium Resources' 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 Pangang Group Vanadium & Titanium Resources going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Pangang Group Vanadium & Titanium Resources that you need to take into consideration.

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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.