The analysts might have been a bit too bullish on Sieyuan Electric Co., Ltd. (SZSE:002028), given that the company fell short of expectations when it released its yearly results last week. Sieyuan Electric missed analyst forecasts, with revenues of CN¥12b and statutory earnings per share (EPS) of CN¥2.00, falling short by 4.9% and 6.2% respectively. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
View our latest analysis for Sieyuan Electric
Taking into account the latest results, the most recent consensus for Sieyuan Electric from ten analysts is for revenues of CN¥16.0b in 2024. If met, it would imply a sizeable 29% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 34% to CN¥2.68. Before this earnings report, the analysts had been forecasting revenues of CN¥16.0b and earnings per share (EPS) of CN¥2.67 in 2024. 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¥59.31. 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 Sieyuan Electric, with the most bullish analyst valuing it at CN¥62.00 and the most bearish at CN¥55.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Sieyuan Electric's growth to accelerate, with the forecast 29% annualised growth to the end of 2024 ranking favourably alongside historical growth of 18% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 20% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Sieyuan Electric is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at CN¥59.31, 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 Sieyuan Electric 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 Sieyuan Electric 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.