The analysts might have been a bit too bullish on Xiamen R&T Plumbing Technology Co.,Ltd. (SZSE:002790), given that the company fell short of expectations when it released its yearly results last week. It wasn’t a great result overall – while revenue fell marginally short of analyst estimates at CN¥2.2b, statutory earnings missed forecasts by 11%, coming in at just CN¥0.53 per share. 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 Xiamen R&T Plumbing TechnologyLtd after the latest results.
View our latest analysis for Xiamen R&T Plumbing TechnologyLtd
SZSE:002790 Earnings and Revenue Growth February 29th 2024
Taking into account the latest results, the consensus forecast from Xiamen R&T Plumbing TechnologyLtd’s five analysts is for revenues of CN¥2.67b in 2024. This reflects a major 23% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 31% to CN¥0.69. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥2.64b and earnings per share (EPS) of CN¥0.70 in 2024. 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 CN¥13.45, 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. The most optimistic Xiamen R&T Plumbing TechnologyLtd analyst has a price target of CN¥14.00 per share, while the most pessimistic values it at CN¥13.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Xiamen R&T Plumbing TechnologyLtd’s growth to accelerate, with the forecast 23% annualised growth to the end of 2024 ranking favourably alongside historical growth of 18% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 16% annually. Factoring in the forecast acceleration in revenue, it’s pretty clear that Xiamen R&T Plumbing TechnologyLtd is expected to grow much faster than its 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at CN¥13.45, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Xiamen R&T Plumbing TechnologyLtd going out to 2025, and you can see them free on our platform here..
Don’t forget that there may still be risks. For instance, we’ve identified 1 warning sign for Xiamen R&T Plumbing TechnologyLtd that you should be aware of.
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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.
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