Wuxi Lead Intelligent Equipment CO.,LTD. (SZSE:300450) just released its latest quarterly report and things are not looking great. Wuxi Lead Intelligent EquipmentLTD delivered a grave earnings miss, with both revenues (CN¥3.4b) and statutory earnings per share (CN¥0.095) falling badly short of analyst expectations. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Following the latest results, Wuxi Lead Intelligent EquipmentLTD's 13 analysts are now forecasting revenues of CN¥16.8b in 2025. This would be a huge 34% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 3,914% to CN¥1.53. In the lead-up to this report, the analysts had been modelling revenues of CN¥17.8b and earnings per share (EPS) of CN¥1.77 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.
The analysts made no major changes to their price target of CN¥22.19, suggesting the downgrades are not expected to have a long-term impact on Wuxi Lead Intelligent EquipmentLTD's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Wuxi Lead Intelligent EquipmentLTD, with the most bullish analyst valuing it at CN¥72.10 and the most bearish at CN¥10.00 per share. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.
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. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 26% growth on an annualised basis. That is in line with its 27% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 16% annually. So although Wuxi Lead Intelligent EquipmentLTD is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider 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. They also downgraded Wuxi Lead Intelligent EquipmentLTD's revenue estimates, but industry data suggests that it 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.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Wuxi Lead Intelligent EquipmentLTD going out to 2026, and you can see them free on our platform here..
You should always think about risks though. Case in point, we've spotted 4 warning signs for Wuxi Lead Intelligent EquipmentLTD you should be aware of, and 3 of them are significant.
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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.
