Last week, you might have seen that Inner Mongolia Dian Tou Energy Corporation Limited (SZSE:002128) released its quarterly result to the market. The early response was not positive, with shares down 3.1% to CN¥17.29 in the past week. Revenues of CN¥6.8b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at CN¥0.44, missing estimates by 4.3%. The analysts 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Inner Mongolia Dian Tou Energy after the latest results.

Taking into account the latest results, the most recent consensus for Inner Mongolia Dian Tou Energy from five analysts is for revenues of CN¥29.1b in 2024. If met, it would imply a modest 4.8% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 7.3% to CN¥2.36. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥29.1b and earnings per share (EPS) of CN¥2.26 in 2024. So the consensus seems to have become somewhat more optimistic on Inner Mongolia Dian Tou Energy's earnings potential following these results.

The consensus price target fell 7.7% to CN¥24.00, suggesting the increase in earnings forecasts was not enough to offset other the analysts concerns.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Inner Mongolia Dian Tou Energy'shistorical trends, as the 9.9% annualised revenue growth to the end of 2024 is roughly in line with the 9.2% 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 4.7% per year. So although Inner Mongolia Dian Tou Energy is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Inner Mongolia Dian Tou Energy's earnings potential next year. 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 fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Inner Mongolia Dian Tou Energy's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Inner Mongolia Dian Tou Energy 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 Inner Mongolia Dian Tou Energy that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.