Henan Shenhuo Coal Industry and Electricity Power Co. Ltd Just Missed EPS By 7.3%: Here's What Analysts Think Will Happen Next

It's shaping up to be a tough period for Henan Shenhuo Coal Industry and Electricity Power Co. Ltd (SZSE:000933), which a week ago released some disappointing yearly results that could have a notable impact on how the market views the stock. Results look to have been somewhat negative - revenue fell 2.1% short of analyst estimates at CN¥38b, and statutory earnings of CN¥1.93 per share missed forecasts by 7.3%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the consensus forecast from Henan Shenhuo Coal Industry and Electricity Power's nine analysts is for revenues of CN¥41.4b in 2025. This reflects a satisfactory 7.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 23% to CN¥2.35. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥41.5b and earnings per share (EPS) of CN¥2.53 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

See our latest analysis for Henan Shenhuo Coal Industry and Electricity Power

It might be a surprise to learn that the consensus price target was broadly unchanged at CN¥22.53, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Henan Shenhuo Coal Industry and Electricity Power at CN¥24.00 per share, while the most bearish prices it at CN¥21.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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 pretty clear that there is an expectation that Henan Shenhuo Coal Industry and Electricity Power's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 7.8% growth on an annualised basis. This is compared to a historical growth rate of 16% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 10% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Henan Shenhuo Coal Industry and Electricity Power.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Henan Shenhuo Coal Industry and Electricity Power. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Henan Shenhuo Coal Industry and Electricity Power's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Henan Shenhuo Coal Industry and Electricity Power going out to 2027, and you can see them free on our platform here..

It is also worth noting that we have found 2 warning signs for Henan Shenhuo Coal Industry and Electricity Power 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.