Results: Jiangsu Azure Corporation Beat Earnings Expectations And Analysts Now Have New Forecasts

Jiangsu Azure Corporation (SZSE:002245) investors will be delighted, with the company turning in some strong numbers with its latest results. Jiangsu Azure beat earnings, with revenues hitting CN¥6.8b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 11%. 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 Jiangsu Azure

Taking into account the latest results, the current consensus from Jiangsu Azure's six analysts is for revenues of CN¥8.25b in 2025. This would reflect a huge 22% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 45% to CN¥0.61. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥7.93b and earnings per share (EPS) of CN¥0.54 in 2025. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a solid gain to earnings per share in particular.

It will come as no surprise to learn that the analysts have increased their price target for Jiangsu Azure 29% to CN¥15.23on the back of these upgrades. 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. The most optimistic Jiangsu Azure analyst has a price target of CN¥18.00 per share, while the most pessimistic values it at CN¥12.45. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. The analysts are definitely expecting Jiangsu Azure's growth to accelerate, with the forecast 22% annualised growth to the end of 2025 ranking favourably alongside historical growth of 8.5% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.6% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Jiangsu Azure is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Jiangsu Azure's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Jiangsu Azure. Long-term earnings power is much more important than next year's profits. We have forecasts for Jiangsu Azure going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Jiangsu Azure 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.