Jiangsu Guoxin Corp. Ltd. Just Missed Earnings - But Analysts Have Updated Their Models

Investors in Jiangsu Guoxin Corp. Ltd. (SZSE:002608) had a good week, as its shares rose 5.3% to close at CN¥8.39 following the release of its annual results. Statutory earnings per share of CN¥0.50 unfortunately missed expectations by 18%, although it was encouraging to see revenues of CN¥35b exceed expectations by 2.4%. 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.

Check out our latest analysis for Jiangsu Guoxin

Taking into account the latest results, the current consensus from Jiangsu Guoxin's three analysts is for revenues of CN¥36.8b in 2024. This would reflect a modest 6.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 54% to CN¥0.76. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥36.4b and earnings per share (EPS) of CN¥0.85 in 2024. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.

The consensus price target held steady at CN¥8.76, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Jiangsu Guoxin's revenue growth is expected to slow, with the forecast 6.6% annualised growth rate until the end of 2024 being well below the historical 12% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.8% annually. Even after the forecast slowdown in growth, it seems obvious that Jiangsu Guoxin is also expected to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Jiangsu Guoxin. 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¥8.76, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Jiangsu Guoxin analysts - going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Jiangsu Guoxin (1 doesn't sit too well with us!) that you need to take into consideration.

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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.