Zhuzhou CRRC Times Electric Co., Ltd. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

The analysts might have been a bit too bullish on Zhuzhou CRRC Times Electric Co., Ltd. (HKG:3898), given that the company fell short of expectations when it released its quarterly results last week. Results look to have been somewhat negative - revenue fell 5.1% short of analyst estimates at CN¥6.6b, and statutory earnings of CN¥0.77 per share missed forecasts by 9.4%. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the consensus forecast from Zhuzhou CRRC Times Electric's 19 analysts is for revenues of CN¥32.2b in 2026. This reflects a decent 18% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 17% to CN¥3.41. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥32.2b and earnings per share (EPS) of CN¥3.41 in 2026. 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.

See our latest analysis for Zhuzhou CRRC Times Electric

It will come as no surprise then, to learn that the consensus price target is largely unchanged at HK$43.86. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Zhuzhou CRRC Times Electric analyst has a price target of HK$49.94 per share, while the most pessimistic values it at HK$37.05. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 14% growth on an annualised basis. That is in line with its 13% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 13% annually. So although Zhuzhou CRRC Times Electric is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at HK$43.86, 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 Zhuzhou CRRC Times Electric. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Zhuzhou CRRC Times Electric analysts - going out to 2027, and you can see them free on our platform here.

You can also see our analysis of Zhuzhou CRRC Times Electric's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.