Jiangsu Changbao Steeltube Co.,Ltd Just Missed Earnings And Its Revenue Numbers Were Weaker Than Expected

It's shaping up to be a tough period for Jiangsu Changbao Steeltube Co.,Ltd (SZSE:002478), which a week ago released some disappointing full-year results that could have a notable impact on how the market views the stock. Jiangsu Changbao SteeltubeLtd reported an earnings miss, with CN¥5.7b revenues falling 15% short of analyst models, and statutory earnings per share (EPS) of CN¥0.70 also coming in slightly below expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the consensus forecast from Jiangsu Changbao SteeltubeLtd's two analysts is for revenues of CN¥6.13b in 2025. This reflects a satisfactory 7.6% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be CN¥0.72, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥7.20b and earnings per share (EPS) of CN¥0.81 in 2025. It looks like sentiment has declined substantially in the aftermath of these results, with a real cut to revenue estimates and a real cut to earnings per share numbers as well.

View our latest analysis for Jiangsu Changbao SteeltubeLtd

The average price target climbed 13% to CN¥6.48despite the reduced earnings forecasts, suggesting that this earnings impact could be a positive for the stock, once it passes.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Jiangsu Changbao SteeltubeLtd's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Jiangsu Changbao SteeltubeLtd'shistorical trends, as the 7.6% annualised revenue growth to the end of 2025 is roughly in line with the 9.4% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 10% annually. So although Jiangsu Changbao SteeltubeLtd is expected to maintain its revenue growth rate, it's forecast to grow slower 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. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Jiangsu Changbao SteeltubeLtd .

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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.