As you might know, Rongsheng Petrochemical Co., Ltd. (SZSE:002493) recently reported its quarterly numbers. Revenues came in at CN¥84b, an impressive 20% ahead of analyst forecasts. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Following the latest results, Rongsheng Petrochemical's nine analysts are now forecasting revenues of CN¥372.6b in 2025. This would be a decent 12% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 198% to CN¥0.60. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥378.4b and earnings per share (EPS) of CN¥0.59 in 2025. So the consensus seems to have become somewhat more optimistic on Rongsheng Petrochemical's earnings potential following these results.

There's been no major changes to the consensus price target of CN¥11.03, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. Currently, the most bullish analyst values Rongsheng Petrochemical at CN¥15.05 per share, while the most bearish prices it at CN¥6.90. 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 Rongsheng Petrochemical's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Rongsheng Petrochemical's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 9.9% growth on an annualised basis. This is compared to a historical growth rate of 29% 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 16% per year. Factoring in the forecast slowdown in growth, it seems obvious that Rongsheng Petrochemical 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 Rongsheng Petrochemical'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 no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 Rongsheng Petrochemical analysts - going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Rongsheng Petrochemical has 2 warning signs we think you should be aware of.

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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.