Guangdong Senssun Weighing Apparatus Group Ltd. Just Missed Earnings - But Analysts Have Updated Their Models
Guangdong Senssun Weighing Apparatus Group Ltd. (SZSE:002870) missed earnings with its latest full-year results, disappointing overly-optimistic forecasters. Results look to have been somewhat negative - revenue fell 3.5% short of analyst estimates at CN¥5.9b, and statutory earnings of CN¥1.18 per share missed forecasts by 9.2%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
After the latest results, the dual analysts covering Guangdong Senssun Weighing Apparatus Group are now predicting revenues of CN¥6.51b in 2025. If met, this would reflect a solid 10% improvement in revenue compared to the last 12 months. Per-share earnings are expected to swell 16% to CN¥1.36. Before this earnings report, the analysts had been forecasting revenues of CN¥6.79b and earnings per share (EPS) of CN¥1.62 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.
Check out our latest analysis for Guangdong Senssun Weighing Apparatus Group
Despite the cuts to forecast earnings, there was no real change to the CN¥39.35 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Guangdong Senssun Weighing Apparatus Group's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 10% growth on an annualised basis. This is compared to a historical growth rate of 31% 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 18% 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 Guangdong Senssun Weighing Apparatus Group.
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. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will 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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Guangdong Senssun Weighing Apparatus Group going out as far as 2027, and you can see them free on our platform here.
Even so, be aware that Guangdong Senssun Weighing Apparatus Group is showing 1 warning sign in our investment analysis , 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.