Last week saw the newest quarterly earnings release from Goldwind Science&Technology Co., Ltd. (SZSE:002202), an important milestone in the company's journey to build a stronger business. Revenue came in at CN¥16b, beating expectations by a remarkable 36%, while statutory earnings per share (EPS) were CN¥0.091, missing estimates by an equally remarkable 34%. 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. 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 consensus forecast from Goldwind Science&Technology's twelve analysts is for revenues of CN¥65.3b in 2025. This reflects a decent 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 72% to CN¥0.72. In the lead-up to this report, the analysts had been modelling revenues of CN¥64.5b and earnings per share (EPS) of CN¥0.72 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 13% to CN¥10.91. It looks as though they previously had some doubts over whether the business would live up to their expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Goldwind Science&Technology, with the most bullish analyst valuing it at CN¥14.20 and the most bearish at CN¥7.75 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
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 Goldwind Science&Technology's growth to accelerate, with the forecast 11% annualised growth to the end of 2025 ranking favourably alongside historical growth of 3.9% 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 17% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Goldwind Science&Technology is expected to grow slower than the wider 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Goldwind Science&Technology's revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Goldwind Science&Technology going out to 2026, and you can see them free on our platform here.
Even so, be aware that Goldwind Science&Technology is showing 2 warning signs in our investment analysis , and 1 of those 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.
