As you might know, Shanghai CEO Environmental Protection Technology Co., Ltd (SHSE:688335) recently reported its yearly numbers. It was a pretty mixed result, with revenues beating expectations to hit CN¥576m. Statutory earnings fell 8.7% short of analyst forecasts, reaching CN¥0.68 per share. The analyst 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 analyst has changed their earnings models, following these results.

Taking into account the latest results, the current consensus, from the solitary analyst covering Shanghai CEO Environmental Protection Technology, is for revenues of CN¥394.0m in 2024. This implies a sizeable 32% reduction in Shanghai CEO Environmental Protection Technology's revenue over the past 12 months. Statutory earnings per share are forecast to tumble 29% to CN¥0.48 in the same period. In the lead-up to this report, the analyst had been modelling revenues of CN¥397.0m and earnings per share (EPS) of CN¥0.52 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analyst did make a minor downgrade to their earnings per share forecasts.

It might be a surprise to learn that the consensus price target fell 7.7% to CN¥11.52, with the analyst clearly linking lower forecast earnings to the performance of the stock price.

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 revenue is expected to reverse, with a forecast 32% annualised decline to the end of 2024. That is a notable change from historical growth of 24% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 19% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Shanghai CEO Environmental Protection Technology is expected to lag the wider industry.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Shanghai CEO Environmental Protection Technology. Fortunately, the analyst also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Shanghai CEO Environmental Protection Technology's revenue is expected to perform worse than the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Shanghai CEO Environmental Protection Technology. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Shanghai CEO Environmental Protection Technology going out as far as 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Shanghai CEO Environmental Protection Technology (1 shouldn't be ignored) you should be aware of.

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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.