Shandong Jinling Mining Co., Ltd. (SZSE:000655) missed earnings with its latest annual results, disappointing overly-optimistic forecasts. Shandong Jinling Mining missed earnings this time around, with CN¥1.5b revenue coming in 2.0% below what the analyst had modelled. Statutory earnings per share (EPS) of CN¥0.40 also fell short of expectations by 18%. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on Shandong Jinling Mining after the latest results.

Following the recent earnings report, the consensus from one analyst covering Shandong Jinling Mining is for revenues of CN¥1.39b in 2024. This implies a small 4.5% decline in revenue compared to the last 12 months. Statutory earnings per share are forecast to decrease 6.4% to CN¥0.37 in the same period. Yet prior to the latest earnings, the analyst had been anticipated revenues of CN¥1.49b and earnings per share (EPS) of CN¥0.49 in 2024. The analyst seem less optimistic after the recent results, reducing their revenue forecasts and making a pretty serious reduction to earnings per share numbers.

It'll come as no surprise then, to learn that the analyst has cut their price target 26% to CN¥5.33.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 4.5% by the end of 2024. This indicates a significant reduction from annual growth of 4.1% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 11% per year. It's pretty clear that Shandong Jinling Mining's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Shandong Jinling Mining. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 analyst estimates for Shandong Jinling Mining going out as far as 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Shandong Jinling Mining (1 is potentially serious!) 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.