SDIC Power Holdings Co., Ltd Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

SDIC Power Holdings Co., Ltd (SHSE:600886) just released its latest quarterly results and things are looking bullish. Statutory revenue of CN¥14b and earnings of CN¥0.27 both blasted past expectations, beating expectations by 21% and 35%, respectively, ahead of expectations. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for SDIC Power Holdings

Taking into account the latest results, the consensus forecast from SDIC Power Holdings' nine analysts is for revenues of CN¥61.2b in 2024. This reflects an okay 7.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 19% to CN¥1.07. Before this earnings report, the analysts had been forecasting revenues of CN¥58.5b and earnings per share (EPS) of CN¥1.04 in 2024. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

Despite these upgrades,the analysts have not made any major changes to their price target of CN¥16.70, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic SDIC Power Holdings analyst has a price target of CN¥19.99 per share, while the most pessimistic values it at CN¥12.40. 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.

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. It's clear from the latest estimates that SDIC Power Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 11% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 6.7% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.0% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect SDIC Power Holdings to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around SDIC Power Holdings' earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for SDIC Power Holdings going out to 2026, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with SDIC Power Holdings (at least 1 which is significant) , and understanding them should be part of your investment process.

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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.