Jiangsu Expressway Company Limited Beat Revenue Forecasts By 12%: Here's What Analysts Are Forecasting Next

As you might know, Jiangsu Expressway Company Limited (HKG:177) recently reported its quarterly numbers. Jiangsu Expressway beat revenue forecasts by a solid 12% to hit CN¥3.5b. Statutory earnings per share came in at CN¥0.88, in line with expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. 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 Jiangsu Expressway

Following the latest results, Jiangsu Expressway's eight analysts are now forecasting revenues of CN¥16.4b in 2024. This would be a decent 9.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 7.6% to CN¥0.95. In the lead-up to this report, the analysts had been modelling revenues of CN¥16.4b and earnings per share (EPS) of CN¥0.94 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.

The analysts reconfirmed their price target of HK$9.28, showing that the business is executing well and in line with expectations. 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 Jiangsu Expressway at HK$10.93 per share, while the most bearish prices it at HK$7.08. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Jiangsu Expressway shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Jiangsu Expressway'shistorical trends, as the 12% annualised revenue growth to the end of 2024 is roughly in line with the 14% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.0% annually. So although Jiangsu Expressway is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

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. 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 HK$9.28, 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 Expressway analysts - going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Jiangsu Expressway that we have uncovered.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.