The third-quarter results for Gansu Shangfeng Cement Co.,Ltd (SZSE:000672) were released last week, making it a good time to revisit its performance. Results look mixed - while revenue fell marginally short of analyst estimates at CN¥1.7b, statutory earnings were in line with expectations, at CN¥0.99 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.
View our latest analysis for Gansu Shangfeng CementLtd
Taking into account the latest results, the most recent consensus for Gansu Shangfeng CementLtd from five analysts is for revenues of CN¥7.38b in 2024. If met, it would imply a satisfactory 7.8% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 55% to CN¥1.31. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥7.50b and earnings per share (EPS) of CN¥1.41 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.
The consensus price target held steady at CN¥10.95, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 Gansu Shangfeng CementLtd analyst has a price target of CN¥11.40 per share, while the most pessimistic values it at CN¥10.00. 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.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Gansu Shangfeng CementLtd's past performance and to peers in the same industry. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 6.2% growth on an annualised basis. That is in line with its 5.2% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 13% 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 most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Gansu Shangfeng CementLtd's revenue is expected to perform worse than the wider industry. The consensus price target held steady at CN¥10.95, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Gansu Shangfeng CementLtd going out to 2025, and you can see them free on our platform here.
Even so, be aware that Gansu Shangfeng CementLtd is showing 2 warning signs 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.
