It's shaping up to be a tough period for Xiamen R&T Plumbing Technology Co.,Ltd. (SZSE:002790), which a week ago released some disappointing full-year results that could have a notable impact on how the market views the stock. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at CN¥2.2b, statutory earnings missed forecasts by 12%, coming in at just CN¥0.52 per share. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
After the latest results, the six analysts covering Xiamen R&T Plumbing TechnologyLtd are now predicting revenues of CN¥2.61b in 2024. If met, this would reflect a decent 20% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 27% to CN¥0.66. In the lead-up to this report, the analysts had been modelling revenues of CN¥2.60b and earnings per share (EPS) of CN¥0.67 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.
The analysts reconfirmed their price target of CN¥13.17, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Xiamen R&T Plumbing TechnologyLtd analyst has a price target of CN¥13.27 per share, while the most pessimistic values it at CN¥13.00. 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.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Xiamen R&T Plumbing TechnologyLtd's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Xiamen R&T Plumbing TechnologyLtd'shistorical trends, as the 20% annualised revenue growth to the end of 2024 is roughly in line with the 18% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 15% annually. So it's pretty clear that Xiamen R&T Plumbing TechnologyLtd is forecast to grow substantially 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. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Xiamen R&T Plumbing TechnologyLtd going out to 2026, and you can see them free on our platform here..
Plus, you should also learn about the 1 warning sign we've spotted with Xiamen R&T Plumbing TechnologyLtd .
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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.