It's shaping up to be a tough period for Yantai Jereh Oilfield Services Group Co., Ltd. (SZSE:002353), which a week ago released some disappointing third-quarter results that could have a notable impact on how the market views the stock. Unfortunately, Yantai Jereh Oilfield Services Group delivered a serious earnings miss. Revenues of CN¥3.1b were 15% below expectations, and statutory earnings per share of CN¥0.51 missed estimates by 38%. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the consensus forecast from Yantai Jereh Oilfield Services Group's 13 analysts is for revenues of CN¥16.9b in 2025. This reflects a major 28% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 35% to CN¥3.30. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥17.0b and earnings per share (EPS) of CN¥3.35 in 2025. 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¥39.53, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Yantai Jereh Oilfield Services Group at CN¥46.80 per share, while the most bearish prices it at CN¥20.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
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. It's clear from the latest estimates that Yantai Jereh Oilfield Services Group's rate of growth is expected to accelerate meaningfully, with the forecast 22% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 16% p.a. 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 13% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Yantai Jereh Oilfield Services Group to grow faster than 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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.
With that in mind, we wouldn't be too quick to come to a conclusion on Yantai Jereh Oilfield Services Group. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Yantai Jereh Oilfield Services Group analysts - going out to 2026, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Yantai Jereh Oilfield Services Group , and understanding this should be part of your investment process.
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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.
