Earnings Report: Beijing Jingneng Clean Energy Co., Limited Missed Revenue Estimates By 7.1%

The analysts might have been a bit too bullish on Beijing Jingneng Clean Energy Co., Limited (HKG:579), given that the company fell short of expectations when it released its annual results last week. Results look to have been somewhat negative - revenue fell 7.1% short of analyst estimates at CN¥18b, and statutory earnings of CN¥0.29 per share missed forecasts by 5.2%. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Beijing Jingneng Clean Energy

Following the latest results, Beijing Jingneng Clean Energy's twin analysts are now forecasting revenues of CN¥21.6b in 2022. This would be a meaningful 18% improvement in sales compared to the last 12 months. Per-share earnings are expected to bounce 31% to CN¥0.38. In the lead-up to this report, the analysts had been modelling revenues of CN¥21.6b and earnings per share (EPS) of CN¥0.38 in 2022. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The consensus price target fell 17% to HK$3.10, suggesting that the analysts might have been a bit enthusiastic in their previous valuation - or they were expecting the company to provide stronger guidance in the annual results.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Beijing Jingneng Clean Energy's past performance and to peers in the same industry. It's clear from the latest estimates that Beijing Jingneng Clean Energy's rate of growth is expected to accelerate meaningfully, with the forecast 18% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 4.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.6% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Beijing Jingneng Clean Energy 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. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2023, which can be seen for 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 Beijing Jingneng Clean Energy (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.