Shenzhen Airport Co., Ltd. Just Missed Earnings - But Analysts Have Updated Their Models

Shenzhen Airport Co., Ltd. (SZSE:000089) just released its latest quarterly report and things are not looking great. Unfortunately, Shenzhen Airport delivered a serious earnings miss. Revenues of CN¥1.1b were 12% below expectations, and statutory earnings per share of CN¥0.04 missed estimates by 21%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Shenzhen Airport after the latest results.

See our latest analysis for Shenzhen Airport

Following the latest results, Shenzhen Airport's nine analysts are now forecasting revenues of CN¥4.79b in 2024. This would be a reasonable 7.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to plummet 31% to CN¥0.21 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥4.79b and earnings per share (EPS) of CN¥0.21 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of CN¥7.83, suggesting that the company has met expectations in its recent result. 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. Currently, the most bullish analyst values Shenzhen Airport at CN¥9.20 per share, while the most bearish prices it at CN¥7.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Shenzhen Airport is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Shenzhen Airport's past performance and to peers in the same industry. The analysts are definitely expecting Shenzhen Airport's growth to accelerate, with the forecast 15% annualised growth to the end of 2024 ranking favourably alongside historical growth of 2.2% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.0% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Shenzhen Airport to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at CN¥7.83, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Shenzhen Airport analysts - going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Shenzhen Airport that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.