Suzhou TFC Optical Communication Co., Ltd. (SZSE:300394) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance.

Following the upgrade, the most recent consensus for Suzhou TFC Optical Communication from its 13 analysts is for revenues of CN¥2.9b in 2024 which, if met, would be a sizeable 90% increase on its sales over the past 12 months. Per-share earnings are expected to jump 66% to CN¥2.38. Previously, the analysts had been modelling revenues of CN¥2.6b and earnings per share (EPS) of CN¥2.00 in 2024. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

See our latest analysis for Suzhou TFC Optical Communication

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Suzhou TFC Optical Communication's rate of growth is expected to accelerate meaningfully, with the forecast 67% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 24% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 24% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Suzhou TFC Optical Communication is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for next year, expecting improving business conditions. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. The clear improvement in sentiment should be enough to get most shareholders feeling more optimistic about Suzhou TFC Optical Communication's future.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Suzhou TFC Optical Communication analysts - going out to 2025, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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.