Estun Automation Co., Ltd (SZSE:002747) shareholders are probably feeling a little disappointed, since its shares fell 3.4% to CN¥14.66 in the week after its latest third-quarter results. It looks like a credible result overall - although revenues of CN¥1.2b were what the analysts expected, Estun Automation surprised by delivering a statutory profit of CN¥0.0033 per share, instead of the previously forecast loss. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the most recent consensus for Estun Automation from 20 analysts is for revenues of CN¥6.33b in 2025. If met, it would imply a major 32% increase on its revenue over the past 12 months. Earnings are expected to improve, with Estun Automation forecast to report a statutory profit of CN¥0.28 per share. In the lead-up to this report, the analysts had been modelling revenues of CN¥6.34b and earnings per share (EPS) of CN¥0.29 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.
The consensus price target held steady at CN¥13.20, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 Estun Automation, with the most bullish analyst valuing it at CN¥29.60 and the most bearish at CN¥7.00 per share. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. 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.
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. We can infer from the latest estimates that forecasts expect a continuation of Estun Automation'shistorical trends, as the 25% annualised revenue growth to the end of 2025 is roughly in line with the 21% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 17% per year. So although Estun Automation 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. 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. The consensus price target held steady at CN¥13.20, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Estun Automation. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Estun Automation analysts - going out to 2026, and you can see them free on our platform here.
You still need to take note of risks, for example - Estun Automation has 1 warning sign we think you should be aware of.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
