Last week, you might have seen that LONGi Green Energy Technology Co., Ltd. (SHSE:601012) released its third-quarter result to the market. The early response was not positive, with shares down 7.1% to CN¥19.01 in the past week. It looks like weak result overall, with ongoing losses and revenues of CN¥20b falling short of analyst predictions. The losses were a relative bright spot though, with a per-share (statutory) loss of CN¥0.17 being 48% smaller than what the analysts had presumed. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

After the latest results, the 22 analysts covering LONGi Green Energy Technology are now predicting revenues of CN¥109.8b in 2025. If met, this would reflect a decent 17% improvement in revenue compared to the last 12 months. LONGi Green Energy Technology is also expected to turn profitable, with statutory earnings of CN¥0.52 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥110.8b and earnings per share (EPS) of CN¥0.49 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 10% to CN¥17.16, suggesting that higher earnings estimates flow through to the stock's valuation as well. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values LONGi Green Energy Technology at CN¥25.00 per share, while the most bearish prices it at CN¥8.80. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that LONGi Green Energy Technology's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 13% growth on an annualised basis. This is compared to a historical growth rate of 25% 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 24% per year. Factoring in the forecast slowdown in growth, it seems obvious that LONGi Green Energy Technology 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 LONGi Green Energy Technology'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 also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on LONGi Green Energy Technology. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple LONGi Green Energy Technology analysts - going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for LONGi Green Energy Technology 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.