Zhejiang JIULI Hi-tech Metals Co.,Ltd Just Recorded A 21% Revenue Beat: Here's What Analysts Think

Investors in Zhejiang JIULI Hi-tech Metals Co.,Ltd (SZSE:002318) had a good week, as its shares rose 7.1% to close at CN¥24.97 following the release of its quarterly results. Revenue of CN¥2.4b came in a notable 21% ahead of expectations, while statutory earnings of CN¥1.53 were in line with what the analysts had been forecasting. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Zhejiang JIULI Hi-tech MetalsLtd after the latest results.

See our latest analysis for Zhejiang JIULI Hi-tech MetalsLtd

Following last week's earnings report, Zhejiang JIULI Hi-tech MetalsLtd's six analysts are forecasting 2024 revenues to be CN¥9.25b, approximately in line with the last 12 months. Statutory earnings per share are expected to decrease 9.0% to CN¥1.50 in the same period. In the lead-up to this report, the analysts had been modelling revenues of CN¥8.96b and earnings per share (EPS) of CN¥1.49 in 2024. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a slight bump in to revenue forecasts.

Even though revenue forecasts increased, there was no change to the consensus price target of CN¥27.92, suggesting the analysts are focused on earnings as the driver of value creation. 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. There are some variant perceptions on Zhejiang JIULI Hi-tech MetalsLtd, with the most bullish analyst valuing it at CN¥30.00 and the most bearish at CN¥25.84 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Zhejiang JIULI Hi-tech MetalsLtd's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 0.3% annualised decline to the end of 2024. That is a notable change from historical growth of 16% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 11% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Zhejiang JIULI Hi-tech MetalsLtd is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. The consensus price target held steady at CN¥27.92, 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 Zhejiang JIULI Hi-tech MetalsLtd going out to 2026, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with Zhejiang JIULI Hi-tech MetalsLtd .

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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.