TCL Zhonghuan Renewable Energy Technology Co.,Ltd. (SZSE:002129) missed earnings with its latest third-quarter results, disappointing overly-optimistic forecasters. It definitely looks like a negative result overall with revenues falling 17% short of analyst estimates at CN¥6.4b. Statutory losses were CN¥0.75 per share, 242% bigger than what the analysts expected. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Taking into account the latest results, the current consensus from TCL Zhonghuan Renewable Energy TechnologyLtd's twelve analysts is for revenues of CN¥51.2b in 2025. This would reflect a substantial 55% increase on its revenue over the past 12 months. TCL Zhonghuan Renewable Energy TechnologyLtd is also expected to turn profitable, with statutory earnings of CN¥0.54 per share. In the lead-up to this report, the analysts had been modelling revenues of CN¥51.2b and earnings per share (EPS) of CN¥0.50 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target rose 13% to CN¥10.06, suggesting that higher earnings estimates flow through to the stock's valuation as well. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic TCL Zhonghuan Renewable Energy TechnologyLtd analyst has a price target of CN¥14.08 per share, while the most pessimistic values it at CN¥6.10. 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 TCL Zhonghuan Renewable Energy TechnologyLtd's past performance and to peers in the same industry. The analysts are definitely expecting TCL Zhonghuan Renewable Energy TechnologyLtd's growth to accelerate, with the forecast 42% annualised growth to the end of 2025 ranking favourably alongside historical growth of 24% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 23% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect TCL Zhonghuan Renewable Energy TechnologyLtd to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards TCL Zhonghuan Renewable Energy TechnologyLtd following these results. 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.

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 TCL Zhonghuan Renewable Energy TechnologyLtd going out to 2026, and you can see them free on our platform here..

Before you take the next step you should know about the 2 warning signs for TCL Zhonghuan Renewable Energy TechnologyLtd that we have uncovered.

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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.