Earnings Report: Xinjiangtianshan Cement Co.,Ltd Missed Revenue Estimates By 11%

It's shaping up to be a tough period for Xinjiangtianshan Cement Co.,Ltd (SZSE:000877), which a week ago released some disappointing annual results that could have a notable impact on how the market views the stock. It looks like a weak result overall, with both revenues and earnings falling well short of analyst predictions. Revenues of CN¥107b missed by 11%, and statutory earnings per share of CN¥0.23 fell short of forecasts by 3.9%. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Xinjiangtianshan CementLtd

Taking into account the latest results, the current consensus, from the seven analysts covering Xinjiangtianshan CementLtd, is for revenues of CN¥96.6b in 2024. This implies a not inconsiderable 10% reduction in Xinjiangtianshan CementLtd's revenue over the past 12 months. Statutory earnings per share are expected to descend 18% to CN¥0.18 in the same period. Before this earnings report, the analysts had been forecasting revenues of CN¥125.1b and earnings per share (EPS) of CN¥0.40 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 analysts made no major changes to their price target of CN¥7.65, suggesting the downgrades are not expected to have a long-term impact on Xinjiangtianshan CementLtd's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Xinjiangtianshan CementLtd, with the most bullish analyst valuing it at CN¥9.59 and the most bearish at CN¥2.83 per share. 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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 10% by the end of 2024. This indicates a significant reduction from annual growth of 29% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 10% annually for the foreseeable future. It's pretty clear that Xinjiangtianshan CementLtd's revenues are expected to perform substantially 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. The consensus price target held steady at CN¥7.65, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Xinjiangtianshan CementLtd going out to 2026, and you can see them free on our platform here..

It is also worth noting that we have found 4 warning signs for Xinjiangtianshan CementLtd (1 is concerning!) 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.