As you might know, Satellite Chemical Co.,Ltd. (SZSE:002648) recently reported its quarterly numbers. It looks like a pretty bad result, all things considered. Although revenues of CN¥11b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 36% to hit CN¥0.31 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Satellite ChemicalLtd after the latest results.

After the latest results, the twelve analysts covering Satellite ChemicalLtd are now predicting revenues of CN¥47.2b in 2024. If met, this would reflect a decent 16% improvement in revenue compared to the last 12 months. Per-share earnings are expected to expand 17% to CN¥1.74. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥47.8b and earnings per share (EPS) of CN¥1.77 in 2024. 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.

There were no changes to revenue or earnings estimates or the price target of CN¥21.96, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Satellite ChemicalLtd at CN¥25.06 per share, while the most bearish prices it at CN¥20.28. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 36% growth on an annualised basis. That is in line with its 31% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 15% annually. So it's pretty clear that Satellite ChemicalLtd is forecast to grow substantially faster than its 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at CN¥21.96, 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 Satellite ChemicalLtd. Long-term earnings power is much more important than next year's profits. We have forecasts for Satellite ChemicalLtd going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Satellite ChemicalLtd that 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.

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