XCMG Construction Machinery Second Quarter 2024 Earnings: Misses Expectations

XCMG Construction Machinery (SZSE:000425) Second Quarter 2024 Results

Key Financial Results

• Revenue: CN¥25.5b (down 7.0% from 2Q 2023).
• Net income: CN¥2.11b (up 1.9% from 2Q 2023).
• Profit margin: 8.3% (up from 7.5% in 2Q 2023). The increase in margin was driven by lower expenses.
• EPS: CN¥0.17 (up from CN¥0.17 in 2Q 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

XCMG Construction Machinery Revenues and Earnings Miss Expectations

Revenue missed analyst estimates by 10%. Earnings per share (EPS) also missed analyst estimates by 19%.

Looking ahead, revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Machinery industry in China.

Performance of the Chinese Machinery industry.

The company's shares are down 4.5% from a week ago.

Risk Analysis

It is worth noting though that we have found 1 warning sign for XCMG Construction Machinery that you need to take into consideration.

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