As you might know, Zhejiang Jingsheng Mechanical & Electrical Co., Ltd. (SZSE:300316) last week released its latest quarterly, and things did not turn out so great for shareholders. The analysts look to have been far too optimistic in the lead-up to these results, with revenues of (CN¥4.3b) coming in 28% below what they had expected. Statutory earnings per share of CN¥0.66 fell 30% short. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Zhejiang Jingsheng Mechanical & Electrical after the latest results.

Taking into account the latest results, the current consensus from Zhejiang Jingsheng Mechanical & Electrical's eight analysts is for revenues of CN¥21.4b in 2025. This would reflect a decent 13% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to expand 17% to CN¥3.59. Before this earnings report, the analysts had been forecasting revenues of CN¥21.8b and earnings per share (EPS) of CN¥3.66 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.

The consensus price target rose 9.8% to CN¥33.46despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Zhejiang Jingsheng Mechanical & Electrical's earnings by assigning a price premium. 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. The most optimistic Zhejiang Jingsheng Mechanical & Electrical analyst has a price target of CN¥43.00 per share, while the most pessimistic values it at CN¥25.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Zhejiang Jingsheng Mechanical & Electrical shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Zhejiang Jingsheng Mechanical & Electrical's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Zhejiang Jingsheng Mechanical & Electrical's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 10% growth on an annualised basis. This is compared to a historical growth rate of 41% 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 22% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Zhejiang Jingsheng Mechanical & Electrical.

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 Zhejiang Jingsheng Mechanical & Electrical's revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Zhejiang Jingsheng Mechanical & Electrical analysts - going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 3 warning signs for Zhejiang Jingsheng Mechanical & Electrical you should be aware of, and 1 of them doesn't sit too well with us.

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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.