Last week saw the newest full-year earnings release from Guangxi Fenglin Wood Industry Group Co.,Ltd (SHSE:601996), an important milestone in the company's journey to build a stronger business. It looks like a pretty bad result, all things considered. Although revenues of CN¥2.1b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 71% to hit CN¥0.04 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

See our latest analysis for Guangxi Fenglin Wood Industry GroupLtd

Following the latest results, Guangxi Fenglin Wood Industry GroupLtd's one analyst are now forecasting revenues of CN¥2.38b in 2023. This would be a notable 16% improvement in sales compared to the last 12 months. Per-share earnings are expected to bounce 197% to CN¥0.12. Yet prior to the latest earnings, the analyst had been anticipated revenues of CN¥2.37b and earnings per share (EPS) of CN¥0.17 in 2023. The analyst seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a large cut to EPS estimates.

It might be a surprise to learn that the consensus price target was broadly unchanged at CN¥3.55, with the analyst clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Guangxi Fenglin Wood Industry GroupLtd's past performance and to peers in the same industry. The analyst is definitely expecting Guangxi Fenglin Wood Industry GroupLtd's growth to accelerate, with the forecast 16% annualised growth to the end of 2023 ranking favourably alongside historical growth of 8.1% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Guangxi Fenglin Wood Industry GroupLtd to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Guangxi Fenglin Wood Industry GroupLtd. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. The consensus price target held steady at CN¥3.55, with the latest estimates not enough to have an impact on their price target.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Guangxi Fenglin Wood Industry GroupLtd going out as far as 2025, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Guangxi Fenglin Wood Industry GroupLtd .

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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.