Gree Electric Appliances, Inc. of Zhuhai (SZSE:000651) shareholders are probably feeling a little disappointed, since its shares fell 4.8% to CN¥40.05 in the week after its latest interim results. Revenues came in 3.4% below expectations, at CN¥100b. Statutory earnings per share were relatively better off, with a per-share profit of CN¥1.71 being roughly in line with analyst estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Taking into account the latest results, the most recent consensus for Gree Electric Appliances of Zhuhai from 24 analysts is for revenues of CN¥214.0b in 2024. If met, it would imply a credible 4.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 2.8% to CN¥5.67. Before this earnings report, the analysts had been forecasting revenues of CN¥216.5b and earnings per share (EPS) of CN¥5.48 in 2024. So the consensus seems to have become somewhat more optimistic on Gree Electric Appliances of Zhuhai's earnings potential following these results.

There's been no major changes to the consensus price target of CN¥47.76, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. The most optimistic Gree Electric Appliances of Zhuhai analyst has a price target of CN¥61.05 per share, while the most pessimistic values it at CN¥33.80. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Gree Electric Appliances of Zhuhai's past performance and to peers in the same industry. The analysts are definitely expecting Gree Electric Appliances of Zhuhai's growth to accelerate, with the forecast 9.6% annualised growth to the end of 2024 ranking favourably alongside historical growth of 1.5% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.6% annually. Gree Electric Appliances of Zhuhai is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Gree Electric Appliances of Zhuhai following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at CN¥47.76, 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 Gree Electric Appliances of Zhuhai analysts - going out to 2026, and you can see them free on our platform here.

Even so, be aware that Gree Electric Appliances of Zhuhai is showing 1 warning sign in our investment analysis , you should know about...

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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.