Shenzhen S.C New Energy Technology Corporation Recorded A 32% Miss On Revenue: Analysts Are Revisiting Their Models

It's been a pretty great week for Shenzhen S.C New Energy Technology Corporation (SZSE:300724) shareholders, with its shares surging 18% to CN¥68.70 in the week since its latest first-quarter results. Revenue fell 32% shy of analyst expectations, coming in at CN¥2.6b. Statutory earnings per share slightly exceeded forecasts at CN¥1.66 but overall it looks like the analystswere a bit over-enthusiastic on revenues. 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.

Check out our latest analysis for Shenzhen S.C New Energy Technology

Taking into account the latest results, the consensus forecast from Shenzhen S.C New Energy Technology's 17 analysts is for revenues of CN¥14.8b in 2024. This reflects a substantial 58% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 39% to CN¥7.49. Before this earnings report, the analysts had been forecasting revenues of CN¥15.7b and earnings per share (EPS) of CN¥8.06 in 2024. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

The analysts made no major changes to their price target of CN¥81.87, suggesting the downgrades are not expected to have a long-term impact on Shenzhen S.C New Energy Technology's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Shenzhen S.C New Energy Technology at CN¥110 per share, while the most bearish prices it at CN¥60.00. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Shenzhen S.C New Energy Technology's growth to accelerate, with the forecast 83% annualised growth to the end of 2024 ranking favourably alongside historical growth of 29% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 23% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Shenzhen S.C New Energy Technology is expected to grow much faster than its 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. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target held steady at CN¥81.87, 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 Shenzhen S.C New Energy Technology going out to 2026, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for Shenzhen S.C New Energy Technology you should know about.

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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.