Earnings Miss: ENN Natural Gas Co.,Ltd. Missed EPS By 32% And Analysts Are Revising Their Forecasts

ENN Natural Gas Co.,Ltd. (SHSE:600803) just released its latest quarterly report and things are not looking great. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at CN¥32b, statutory earnings missed forecasts by an incredible 32%, coming in at just CN¥0.31 per share. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for ENN Natural GasLtd

Taking into account the latest results, the consensus forecast from ENN Natural GasLtd's eleven analysts is for revenues of CN¥158.2b in 2025. This reflects a credible 7.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to descend 12% to CN¥2.15 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥158.3b and earnings per share (EPS) of CN¥2.18 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at CN¥22.71. 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 ENN Natural GasLtd at CN¥25.30 per share, while the most bearish prices it at CN¥18.50. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that ENN Natural GasLtd's revenue growth is expected to slow, with the forecast 6.3% annualised growth rate until the end of 2025 being well below the historical 14% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 8.3% 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 ENN Natural GasLtd.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that ENN Natural GasLtd's revenue is expected to perform worse than the wider industry. The consensus price target held steady at CN¥22.71, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on ENN Natural GasLtd. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for ENN Natural GasLtd going out to 2026, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for ENN Natural GasLtd 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.