The quarterly results for Changzhou Xingyu Automotive Lighting Systems Co.,Ltd. (SHSE:601799) were released last week, making it a good time to revisit its performance. The result was positive overall - although revenues of CN¥3.5b were in line with what the analysts predicted, Changzhou Xingyu Automotive Lighting SystemsLtd surprised by delivering a statutory profit of CN¥1.34 per share, modestly greater than expected. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Following the latest results, Changzhou Xingyu Automotive Lighting SystemsLtd's 13 analysts are now forecasting revenues of CN¥16.2b in 2025. This would be a major 32% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 45% to CN¥6.58. In the lead-up to this report, the analysts had been modelling revenues of CN¥16.1b and earnings per share (EPS) of CN¥6.59 in 2025. 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 CN¥164, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Changzhou Xingyu Automotive Lighting SystemsLtd analyst has a price target of CN¥206 per share, while the most pessimistic values it at CN¥140. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Changzhou Xingyu Automotive Lighting SystemsLtd's rate of growth is expected to accelerate meaningfully, with the forecast 25% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 13% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 18% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Changzhou Xingyu Automotive Lighting SystemsLtd to grow faster than the wider 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Changzhou Xingyu Automotive Lighting SystemsLtd going out to 2026, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.