A week ago, Sany Heavy Industry Co.,Ltd (SHSE:600031) came out with a strong set of third-quarter numbers that could potentially lead to a re-rate of the stock. It was overall a positive result, with revenues beating expectations by 3.0% to hit CN¥19b. Sany Heavy IndustryLtd also reported a statutory profit of CN¥0.16, which was an impressive 36% above what the analysts had 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 Sany Heavy IndustryLtd after the latest results.

After the latest results, the 20 analysts covering Sany Heavy IndustryLtd are now predicting revenues of CN¥88.5b in 2025. If met, this would reflect a meaningful 16% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 47% to CN¥0.93. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥88.2b and earnings per share (EPS) of CN¥0.92 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¥18.99. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Sany Heavy IndustryLtd at CN¥23.70 per share, while the most bearish prices it at CN¥13.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Sany Heavy IndustryLtd's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 13% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 3.5% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 17% annually for the foreseeable future. So although Sany Heavy IndustryLtd's revenue growth is expected to improve, it is still expected to grow slower than the industry.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at CN¥18.99, with the latest estimates not enough to have an impact on their price targets.

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. We have forecasts for Sany Heavy IndustryLtd going out to 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Sany Heavy IndustryLtd you should know about.

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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.