China Petroleum & Chemical Corporation Just Missed EPS By 14%: Here's What Analysts Think Will Happen Next
China Petroleum & Chemical Corporation (HKG:386) just released its latest half-yearly report and things are not looking great. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at CN¥733b, statutory earnings missed forecasts by 14%, coming in at just CN¥0.073 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Following the latest results, China Petroleum & Chemical's eleven analysts are now forecasting revenues of CN¥2.97t in 2026. This would be a reasonable 5.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 21% to CN¥0.35. Before this earnings report, the analysts had been forecasting revenues of CN¥2.93t and earnings per share (EPS) of CN¥0.36 in 2026. 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.
View our latest analysis for China Petroleum & Chemical
It will come as no surprise then, to learn that the consensus price target is largely unchanged at HK$5.08. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values China Petroleum & Chemical at HK$7.02 per share, while the most bearish prices it at HK$4.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
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. It's clear from the latest estimates that China Petroleum & Chemical's rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 0.4% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 1.4% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that China Petroleum & Chemical is expected to grow much faster than its 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. 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. 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 in mind, we wouldn't be too quick to come to a conclusion on China Petroleum & Chemical. Long-term earnings power is much more important than next year's profits. We have forecasts for China Petroleum & Chemical going out to 2028, and you can see them free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with China Petroleum & Chemical .
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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.