Zhejiang Shuanghuan Driveline Co.,Ltd. (SZSE:002472) shareholders are probably feeling a little disappointed, since its shares fell 4.6% to CN¥21.60 in the week after its latest full-year results. Revenues came in 2.6% below expectations, at CN¥8.1b. Statutory earnings per share were relatively better off, with a per-share profit of CN¥0.97 being roughly in line with analyst estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the most recent consensus for Zhejiang Shuanghuan DrivelineLtd from 16 analysts is for revenues of CN¥9.70b in 2024. If met, it would imply a major 20% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 22% to CN¥1.20. Before this earnings report, the analysts had been forecasting revenues of CN¥9.78b and earnings per share (EPS) of CN¥1.19 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
There were no changes to revenue or earnings estimates or the price target of CN¥30.01, suggesting that the company has met expectations in its recent result. 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 Zhejiang Shuanghuan DrivelineLtd, with the most bullish analyst valuing it at CN¥35.30 and the most bearish at CN¥25.52 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Zhejiang Shuanghuan DrivelineLtd shareholders.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Zhejiang Shuanghuan DrivelineLtd'shistorical trends, as the 20% annualised revenue growth to the end of 2024 is roughly in line with the 22% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 19% annually. So although Zhejiang Shuanghuan DrivelineLtd is expected to maintain its revenue growth rate, it's only growing at about the rate of 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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at CN¥30.01, 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. At Simply Wall St, we have a full range of analyst estimates for Zhejiang Shuanghuan DrivelineLtd going out to 2026, and you can see them free on our platform here..
You can also view our analysis of Zhejiang Shuanghuan DrivelineLtd's balance sheet, and whether we think Zhejiang Shuanghuan DrivelineLtd is carrying too much debt, for free on our platform here.
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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.