The annual results for Shenzhen S.C New Energy Technology Corporation (SZSE:300724) were released last week, making it a good time to revisit its performance. Revenues came in 9.3% below expectations, at CN¥8.7b. Statutory earnings per share were relatively better off, with a per-share profit of CN¥4.69 being roughly in line with analyst estimates. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Taking into account the latest results, the consensus forecast from Shenzhen S.C New Energy Technology's 15 analysts is for revenues of CN¥15.1b in 2024. This reflects a sizeable 73% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 72% to CN¥8.07. In the lead-up to this report, the analysts had been modelling revenues of CN¥15.3b and earnings per share (EPS) of CN¥7.46 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at CN¥81.08, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Shenzhen S.C New Energy Technology, with the most bullish analyst valuing it at CN¥110 and the most bearish at CN¥60.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Shenzhen S.C New Energy Technology's growth to accelerate, with the forecast 73% annualised growth to the end of 2024 ranking favourably alongside historical growth of 29% 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 22% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Shenzhen S.C New Energy Technology is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Shenzhen S.C New Energy Technology's earnings potential next year. 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¥81.08, with the latest estimates not enough to have an impact on their price targets.

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

It is also worth noting that we have found 1 warning sign for Shenzhen S.C New Energy Technology that you need to take into consideration.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.