It's been a good week for Jingjin Equipment Inc. (SHSE:603279) shareholders, because the company has just released its latest first-quarter results, and the shares gained 2.2% to CN¥23.25. Jingjin Equipment missed revenue estimates by 6.8%, coming in atCN¥1.5b, although statutory earnings per share (EPS) of CN¥0.40 beat expectations, coming in 5.3% ahead of 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. 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 Jingjin Equipment from three analysts is for revenues of CN¥6.90b in 2024. If met, it would imply a meaningful 9.7% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 7.9% to CN¥1.94. Before this earnings report, the analysts had been forecasting revenues of CN¥7.84b and earnings per share (EPS) of CN¥2.16 in 2024. It looks like sentiment has declined substantially in the aftermath of these results, with a substantial drop in revenue estimates and a substantial drop in earnings per share numbers as well.
The average price target climbed 58% to CN¥33.00despite the reduced earnings forecasts, suggesting that this earnings impact could be a positive for the stock, once it passes.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Jingjin Equipment's revenue growth is expected to slow, with the forecast 13% annualised growth rate until the end of 2024 being well below the historical 17% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 18% per year. Factoring in the forecast slowdown in growth, it seems obvious that Jingjin Equipment is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
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 Jingjin Equipment going out to 2026, and you can see them free on our platform here..
Even so, be aware that Jingjin Equipment is showing 2 warning signs in our investment analysis , you should know about...
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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.