Investors in Sunresin New Materials Co.,Ltd (SZSE:300487) had a good week, as its shares rose 3.9% to close at CN¥39.95 following the release of its second-quarter results. The results were mixed; although revenues of CN¥664m fell 14% short of analyst estimates, statutory earnings per share (EPS) of CN¥0.47 beat expectations by 13%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Sunresin New MaterialsLtd after the latest results.

Taking into account the latest results, the current consensus from Sunresin New MaterialsLtd's nine analysts is for revenues of CN¥2.89b in 2024. This would reflect a credible 4.2% increase on its revenue over the past 12 months. Per-share earnings are expected to swell 16% to CN¥1.78. Before this earnings report, the analysts had been forecasting revenues of CN¥3.04b and earnings per share (EPS) of CN¥1.84 in 2024. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

It'll come as no surprise then, to learn that the analysts have cut their price target 7.1% to CN¥58.21. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Sunresin New MaterialsLtd, with the most bullish analyst valuing it at CN¥76.00 and the most bearish at CN¥43.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. We would highlight that Sunresin New MaterialsLtd's revenue growth is expected to slow, with the forecast 8.7% annualised growth rate until the end of 2024 being well below the historical 26% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 15% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Sunresin New MaterialsLtd.

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. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Sunresin New MaterialsLtd's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Sunresin New MaterialsLtd going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Sunresin New MaterialsLtd that you need to take into consideration.

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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.