As you might know, Zhuzhou CRRC Times Electric Co., Ltd. (HKG:3898) last week released its latest quarterly, and things did not turn out so great for shareholders. Zhuzhou CRRC Times Electric missed earnings this time around, with CN¥6.0b revenue coming in 7.6% below what the analysts had modelled. Statutory earnings per share (EPS) of CN¥0.70 also fell short of expectations by 11%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Zhuzhou CRRC Times Electric after the latest results.
Taking into account the latest results, the most recent consensus for Zhuzhou CRRC Times Electric from 23 analysts is for revenues of CN¥30.2b in 2025. If met, it would imply a substantial 26% increase on its revenue over the past 12 months. Per-share earnings are expected to ascend 15% to CN¥2.91. In the lead-up to this report, the analysts had been modelling revenues of CN¥30.3b and earnings per share (EPS) of CN¥2.91 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.
There were no changes to revenue or earnings estimates or the price target of HK$37.40, suggesting that the company has met expectations in its recent result. 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. Currently, the most bullish analyst values Zhuzhou CRRC Times Electric at HK$46.86 per share, while the most bearish prices it at HK$28.53. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Zhuzhou CRRC Times Electric's growth to accelerate, with the forecast 20% annualised growth to the end of 2025 ranking favourably alongside historical growth of 9.1% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Zhuzhou CRRC Times Electric 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. Happily, there were no major changes to revenue forecasts, with the business still 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Zhuzhou CRRC Times Electric going out to 2026, and you can see them free on our platform here..
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
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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.
