Xinyi Energy Holdings Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

As you might know, Xinyi Energy Holdings Limited (HKG:3868) last week released its latest annual, and things did not turn out so great for shareholders. Xinyi Energy Holdings missed earnings this time around, with HK$2.5b revenue coming in 5.8% below what the analysts had modelled. Statutory earnings per share (EPS) of HK$0.13 also fell short of expectations by 13%. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Xinyi Energy Holdings

Taking into account the latest results, the most recent consensus for Xinyi Energy Holdings from 16 analysts is for revenues of HK$2.85b in 2024. If met, it would imply a meaningful 13% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to step up 16% to HK$0.14. In the lead-up to this report, the analysts had been modelling revenues of HK$3.06b and earnings per share (EPS) of HK$0.16 in 2024. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.

It'll come as no surprise then, to learn that the analysts have cut their price target 24% to HK$1.50. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Xinyi Energy Holdings, with the most bullish analyst valuing it at HK$2.30 and the most bearish at HK$1.10 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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 can infer from the latest estimates that forecasts expect a continuation of Xinyi Energy Holdings'historical trends, as the 13% 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 5.3% annually. So although Xinyi Energy Holdings is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded Xinyi Energy Holdings' revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Xinyi Energy 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 3 warning signs with Xinyi Energy Holdings , 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.