Earnings Miss: Aerospace CH UAV Co.,Ltd Missed EPS By 65% And Analysts Are Revising Their Forecasts

It's shaping up to be a tough period for Aerospace CH UAV Co.,Ltd (SZSE:002389), which a week ago released some disappointing annual results that could have a notable impact on how the market views the stock. Aerospace CH UAVLtd delivered a grave earnings miss, with both revenues (CN¥2.9b) and statutory earnings per share (CN¥0.16) falling badly short of analyst expectations. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Aerospace CH UAVLtd

After the latest results, the four analysts covering Aerospace CH UAVLtd are now predicting revenues of CN¥5.31b in 2024. If met, this would reflect a substantial 85% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 132% to CN¥0.36. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥5.97b and earnings per share (EPS) of CN¥0.63 in 2024. Indeed, we can see that the analysts are a lot more bearish about Aerospace CH UAVLtd's prospects following the latest results, administering a real cut to revenue estimates and slashing their EPS estimates to boot.

The consensus price target fell 20% to CN¥21.60, with the weaker earnings outlook clearly leading valuation estimates.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Aerospace CH UAVLtd's rate of growth is expected to accelerate meaningfully, with the forecast 85% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 4.0% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 18% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Aerospace CH UAVLtd to grow faster 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. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Aerospace CH UAVLtd. Long-term earnings power is much more important than next year's profits. We have forecasts for Aerospace CH UAVLtd going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Aerospace CH UAVLtd has 2 warning signs we think you should be aware of.

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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.