Gansu Shangfeng Cement Co.,Ltd (SZSE:000672) missed earnings with its latest full-year results, disappointing overly-optimistic forecasters. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at CN¥6.4b, statutory earnings missed forecasts by 13%, coming in at just CN¥0.78 per share. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

After the latest results, the four analysts covering Gansu Shangfeng CementLtd are now predicting revenues of CN¥6.59b in 2024. If met, this would reflect a credible 3.1% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be CN¥0.77, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of CN¥7.11b and earnings per share (EPS) of CN¥1.01 in 2024. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a large cut to earnings per share numbers.

It'll come as no surprise then, to learn that the analysts have cut their price target 18% to CN¥9.31. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Gansu Shangfeng CementLtd, with the most bullish analyst valuing it at CN¥9.36 and the most bearish at CN¥9.27 per share. 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.

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. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 3.1% growth on an annualised basis. That is in line with its 3.4% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 8.3% annually. So although Gansu Shangfeng CementLtd is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Gansu Shangfeng CementLtd. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Gansu Shangfeng CementLtd's future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Gansu Shangfeng CementLtd analysts - going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Gansu Shangfeng CementLtd has 1 warning sign we think 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.