SDIC Power Holdings Co., Ltd (SHSE:600886) just released its latest quarterly report and things are not looking great. SDIC Power Holdings missed earnings this time around, with CN¥13b revenue coming in 9.2% below what the analysts had modelled. Statutory earnings per share (EPS) of CN¥0.22 also fell short of expectations by 16%. 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.
Taking into account the latest results, the most recent consensus for SDIC Power Holdings from ten analysts is for revenues of CN¥61.4b in 2024. If met, it would imply a credible 6.8% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to ascend 11% to CN¥1.05. Before this earnings report, the analysts had been forecasting revenues of CN¥61.3b and earnings per share (EPS) of CN¥1.08 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.
The consensus price target held steady at CN¥17.70, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. Currently, the most bullish analyst values SDIC Power Holdings at CN¥22.10 per share, while the most bearish prices it at CN¥9.64. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting SDIC Power Holdings' growth to accelerate, with the forecast 14% annualised growth to the end of 2024 ranking favourably alongside historical growth of 8.1% 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 6.5% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that SDIC Power Holdings is expected to grow much faster than its industry.
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. 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¥17.70, with the latest estimates not enough to have an impact on their price targets.
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 SDIC Power Holdings going out to 2026, and you can see them free on our platform here..
Plus, you should also learn about the 2 warning signs we've spotted with SDIC Power Holdings (including 1 which shouldn't be ignored) .
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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.