Last week, you might have seen that Zhejiang Shuanghuan Driveline Co.,Ltd. (SZSE:002472) released its third-quarter result to the market. The early response was not positive, with shares down 4.0% to CN¥28.14 in the past week. Zhejiang Shuanghuan DrivelineLtd reported in line with analyst predictions, delivering revenues of CN¥2.4b and statutory earnings per share of CN¥0.97, suggesting the business is executing well and in line with its plan. 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 consensus forecast from Zhejiang Shuanghuan DrivelineLtd's 18 analysts is for revenues of CN¥11.3b in 2025. This reflects a sizeable 26% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 30% to CN¥1.50. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥11.3b and earnings per share (EPS) of CN¥1.50 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at CN¥30.36. 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. There are some variant perceptions on Zhejiang Shuanghuan DrivelineLtd, with the most bullish analyst valuing it at CN¥36.30 and the most bearish at CN¥26.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Zhejiang Shuanghuan DrivelineLtd'shistorical trends, as the 21% annualised revenue growth to the end of 2025 is roughly in line with the 23% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 18% annually. It's clear that while Zhejiang Shuanghuan DrivelineLtd's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 in mind, we wouldn't be too quick to come to a conclusion on Zhejiang Shuanghuan DrivelineLtd. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Zhejiang Shuanghuan DrivelineLtd analysts - going out to 2026, and you can see them free on our platform here.

You can also view our analysis of Zhejiang Shuanghuan DrivelineLtd's balance sheet, and whether we think Zhejiang Shuanghuan DrivelineLtd is carrying too much debt, for free on our 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.