Gresgying Digital Energy Technology Co.,Ltd Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

It's shaping up to be a tough period for Gresgying Digital Energy Technology Co.,Ltd (SHSE:600212), which a week ago released some disappointing annual results that could have a notable impact on how the market views the stock. Gresgying Digital Energy TechnologyLtd delivered a grave earnings miss, with both revenues (CN¥650m) and statutory earnings per share (CN¥0.031) falling badly short of analyst expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Gresgying Digital Energy TechnologyLtd

After the latest results, the three analysts covering Gresgying Digital Energy TechnologyLtd are now predicting revenues of CN¥1.83b in 2024. If met, this would reflect a major 182% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 1,047% to CN¥0.29. Before this earnings report, the analysts had been forecasting revenues of CN¥1.83b and earnings per share (EPS) of CN¥0.29 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.

With no major changes to earnings forecasts, the consensus price target fell 8.6% to CN¥7.43, suggesting that the analysts might have previously been hoping for an earnings upgrade.

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 Gresgying Digital Energy TechnologyLtd's rate of growth is expected to accelerate meaningfully, with the forecast 182% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 11% p.a. 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 7.0% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Gresgying Digital Energy TechnologyLtd is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share 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 fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Gresgying Digital Energy TechnologyLtd's future valuation.

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. We have estimates - from multiple Gresgying Digital Energy TechnologyLtd analysts - going out to 2025, and you can see them free on our platform here.

Even so, be aware that Gresgying Digital Energy TechnologyLtd is showing 2 warning signs in our investment analysis , and 1 of those is a bit unpleasant...

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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.