Investors in Satellite Chemical Co.,Ltd. (SZSE:002648) had a good week, as its shares rose 3.4% to close at CN¥18.74 following the release of its third-quarter results. Satellite ChemicalLtd missed revenue estimates by 2.8%, coming in atCN¥13b, although statutory earnings per share (EPS) of CN¥0.49 beat expectations, coming in 5.1% ahead of 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Following the latest results, Satellite ChemicalLtd's eleven analysts are now forecasting revenues of CN¥53.3b in 2025. This would be a sizeable 28% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 36% to CN¥2.05. In the lead-up to this report, the analysts had been modelling revenues of CN¥53.3b and earnings per share (EPS) of CN¥2.04 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¥22.45. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Satellite ChemicalLtd analyst has a price target of CN¥25.06 per share, while the most pessimistic values it at CN¥20.35. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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 Satellite ChemicalLtd's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 22% growth on an annualised basis. This is compared to a historical growth rate of 30% 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 15% annually. So it's pretty clear that, while Satellite ChemicalLtd's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at CN¥22.45, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Satellite ChemicalLtd. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Satellite ChemicalLtd 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 Satellite ChemicalLtd 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.