Investors in Guangdong Xinbao Electrical Appliances Holdings Co., Ltd (SZSE:002705) had a good week, as its shares rose 3.2% to close at CN¥15.02 following the release of its third-quarter results. Guangdong Xinbao Electrical Appliances Holdings beat revenue expectations by 4.3%, at CN¥5.0b. Statutory earnings per share (EPS) came in at CN¥0.42, some 2.3% short of analyst estimates. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Taking into account the latest results, the most recent consensus for Guangdong Xinbao Electrical Appliances Holdings from nine analysts is for revenues of CN¥18.0b in 2025. If met, it would imply a decent 8.4% increase on its revenue over the past 12 months. Per-share earnings are expected to climb 20% to CN¥1.52. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥17.9b and earnings per share (EPS) of CN¥1.52 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at CN¥19.46. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Guangdong Xinbao Electrical Appliances Holdings, with the most bullish analyst valuing it at CN¥26.80 and the most bearish at CN¥14.30 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. It's pretty clear that there is an expectation that Guangdong Xinbao Electrical Appliances Holdings' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 6.7% growth on an annualised basis. This is compared to a historical growth rate of 8.6% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.2% per year. Factoring in the forecast slowdown in growth, it seems obvious that Guangdong Xinbao Electrical Appliances Holdings is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Guangdong Xinbao Electrical Appliances Holdings' revenue is expected to perform worse than the wider industry. The consensus price target held steady at CN¥19.46, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Guangdong Xinbao Electrical Appliances Holdings going out to 2026, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Guangdong Xinbao Electrical Appliances Holdings 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.