As you might know, Foshan Electrical and Lighting Co.,Ltd (SZSE:000541) last week released its latest full-year, and things did not turn out so great for shareholders. Foshan Electrical and LightingLtd missed analyst forecasts, with revenues of CN¥9.1b and statutory earnings per share (EPS) of CN¥0.21, falling short by 6.2% and 5.9% respectively. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Taking into account the latest results, the most recent consensus for Foshan Electrical and LightingLtd from five analysts is for revenues of CN¥11.5b in 2024. If met, it would imply a substantial 27% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 44% to CN¥0.27. In the lead-up to this report, the analysts had been modelling revenues of CN¥12.6b and earnings per share (EPS) of CN¥0.32 in 2024. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.

The analysts made no major changes to their price target of CN¥7.10, suggesting the downgrades are not expected to have a long-term impact on Foshan Electrical and LightingLtd's valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Foshan Electrical and LightingLtd'shistorical trends, as the 27% annualised revenue growth to the end of 2024 is roughly in line with the 25% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 18% per year. So although Foshan Electrical and LightingLtd 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 Foshan Electrical and LightingLtd's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target held steady at CN¥7.10, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Foshan Electrical and LightingLtd analysts - going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 3 warning signs for Foshan Electrical and LightingLtd 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.