It's shaping up to be a tough period for Shenzhen Everwin Precision Technology Co., Ltd. (SZSE:300115), which a week ago released some disappointing annual results that could have a notable impact on how the market views the stock. Results showed a clear earnings miss, with CN¥14b revenue coming in 3.9% lower than what the analystsexpected. Statutory earnings per share (EPS) of CN¥0.07 missed the mark badly, arriving some 65% below what was expected. 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 Shenzhen Everwin Precision Technology after the latest results.

Following the latest results, Shenzhen Everwin Precision Technology's three analysts are now forecasting revenues of CN¥17.0b in 2024. This would be a sizeable 24% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 784% to CN¥0.63. Before this earnings report, the analysts had been forecasting revenues of CN¥18.0b and earnings per share (EPS) of CN¥0.60 in 2024. So it's pretty clear that while sentiment around revenues has declined following the latest results, the analysts are now more bullish on the company's earnings power.

The consensus price target fell 23% to CN¥11.00, with the analysts signalling that the weaker revenue outlook was a more powerful indicator than the upgraded EPS forecasts.

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 Shenzhen Everwin Precision Technology's rate of growth is expected to accelerate meaningfully, with the forecast 24% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 13% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 19% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Shenzhen Everwin Precision Technology to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Shenzhen Everwin Precision Technology following these results. They also downgraded Shenzhen Everwin Precision Technology's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Shenzhen Everwin Precision Technology. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Shenzhen Everwin Precision Technology analysts - going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Shenzhen Everwin Precision Technology (including 1 which can't be ignored) .

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