Zhejiang NHU Company Ltd. (SZSE:002001) defied analyst predictions to release its third-quarter results, which were ahead of market expectations. Zhejiang NHU delivered a significant beat to revenue and earnings per share (EPS) expectations, hitting CN¥5.9b-20% above indicated-andCN¥0.58-35% above forecasts- respectively 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Taking into account the latest results, the current consensus from Zhejiang NHU's eleven analysts is for revenues of CN¥21.6b in 2025. This would reflect a decent 8.8% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to ascend 14% to CN¥1.71. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥21.2b and earnings per share (EPS) of CN¥1.65 in 2025. So the consensus seems to have become somewhat more optimistic on Zhejiang NHU's earnings potential following these results.

The consensus price target rose 8.1% to CN¥25.41, suggesting that higher earnings estimates flow through to the stock's valuation as well. 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. Currently, the most bullish analyst values Zhejiang NHU at CN¥32.61 per share, while the most bearish prices it at CN¥16.80. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Zhejiang NHU's past performance and to peers in the same industry. We would highlight that Zhejiang NHU's revenue growth is expected to slow, with the forecast 7.0% annualised growth rate until the end of 2025 being well below the historical 16% 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. Factoring in the forecast slowdown in growth, it seems obvious that Zhejiang NHU is also expected to grow slower than other industry participants.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Zhejiang NHU's earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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. At Simply Wall St, we have a full range of analyst estimates for Zhejiang NHU going out to 2026, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for Zhejiang NHU 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.