Investors in Hangzhou Oxygen Plant Group Co.,Ltd. (SZSE:002430) had a good week, as its shares rose 6.8% to close at CN¥25.51 following the release of its quarterly results. Revenues were CN¥3.6b, 10% below analyst expectations, although losses didn't appear to worsen significantly, with a per-share statutory loss of CN¥1.22 being in line with what the analysts forecast. 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 Hangzhou Oxygen Plant GroupLtd after the latest results.

Taking into account the latest results, the current consensus from Hangzhou Oxygen Plant GroupLtd's nine analysts is for revenues of CN¥17.5b in 2025. This would reflect a sizeable 26% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 49% to CN¥1.57. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥17.7b and earnings per share (EPS) of CN¥1.68 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 6.1% to CN¥29.45, suggesting the revised estimates are not indicative of a weaker long-term future for the business. 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. The most optimistic Hangzhou Oxygen Plant GroupLtd analyst has a price target of CN¥38.00 per share, while the most pessimistic values it at CN¥22.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Hangzhou Oxygen Plant GroupLtd's past performance and to peers in the same industry. It's clear from the latest estimates that Hangzhou Oxygen Plant GroupLtd's rate of growth is expected to accelerate meaningfully, with the forecast 20% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 11% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Hangzhou Oxygen Plant GroupLtd to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Hangzhou Oxygen Plant GroupLtd. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Hangzhou Oxygen Plant GroupLtd. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Hangzhou Oxygen Plant GroupLtd analysts - going out to 2026, and you can see them free on our platform here.

It might also be worth considering whether Hangzhou Oxygen Plant GroupLtd's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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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.