Earnings Beat: Shaanxi Coal Industry Company Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models
Earnings Beat: Shaanxi Coal Industry Company Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models
As you might know, Shaanxi Coal Industry Company Limited (SHSE:601225) recently reported its third-quarter numbers. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at CN¥41b, statutory earnings beat expectations by a notable 14%, coming in at CN¥0.55 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Shaanxi Coal Industry after the latest results.
Following last week's earnings report, Shaanxi Coal Industry's 13 analysts are forecasting 2025 revenues to be CN¥165.8b, approximately in line with the last 12 months. Per-share earnings are expected to rise 7.6% to CN¥2.33. In the lead-up to this report, the analysts had been modelling revenues of CN¥165.6b and earnings per share (EPS) of CN¥2.34 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.
The analysts reconfirmed their price target of CN¥26.15, showing that the business is executing well and in line with expectations. 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 Shaanxi Coal Industry analyst has a price target of CN¥32.90 per share, while the most pessimistic values it at CN¥21.00. 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 Shaanxi Coal Industry's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 1.5% annualised decline to the end of 2025. That is a notable change from historical growth of 17% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.7% per year. It's pretty clear that Shaanxi Coal Industry's revenues are expected to perform substantially worse than the wider 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Shaanxi Coal Industry's revenue is expected to perform worse than the wider industry. The consensus price target held steady at CN¥26.15, with the latest estimates not enough to have an impact on their price targets.
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 Shaanxi Coal Industry analysts - going out to 2026, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 1 warning sign for Shaanxi Coal Industry that 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.