Jiangxi Wannianqing Cement Co., Ltd. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

As you might know, Jiangxi Wannianqing Cement Co., Ltd. (SZSE:000789) last week released its latest full-year, and things did not turn out so great for shareholders. The analysts look to have been far too optimistic in the lead-up to these results, with revenues of (CN¥8.2b) coming in 23% below what they had expected. Statutory earnings per share of CN¥0.29 fell 64% short. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Jiangxi Wannianqing Cement

After the latest results, the consensus from Jiangxi Wannianqing Cement's twin analysts is for revenues of CN¥7.95b in 2024, which would reflect a noticeable 3.0% decline in revenue compared to the last year of performance. Per-share earnings are expected to surge 33% to CN¥0.38. In the lead-up to this report, the analysts had been modelling revenues of CN¥11.6b and earnings per share (EPS) of CN¥1.19 in 2024. It looks like sentiment has declined substantially in the aftermath of these results, with a pretty serious reduction to revenue estimates and a large cut to earnings per share numbers as well.

The consensus price target fell 18% to CN¥7.17, with the weaker earnings outlook clearly leading valuation estimates.

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. Over the past five years, revenues have declined around 0.8% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 3.0% decline in revenue until the end of 2024. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 9.4% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect Jiangxi Wannianqing Cement to suffer worse 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. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

It is also worth noting that we have found 1 warning sign for Jiangxi Wannianqing Cement 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.