NAURA Technology Group Co., Ltd. (SZSE:002371) last week reported its latest second-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at CN¥6.5b, statutory earnings beat expectations by a notable 23%, coming in at CN¥3.12 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on NAURA Technology Group after the latest results.

Taking into account the latest results, the most recent consensus for NAURA Technology Group from 20 analysts is for revenues of CN¥30.5b in 2024. If met, it would imply a meaningful 17% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to grow 19% to CN¥10.96. In the lead-up to this report, the analysts had been modelling revenues of CN¥30.1b and earnings per share (EPS) of CN¥10.37 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of CN¥398, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on NAURA Technology Group, with the most bullish analyst valuing it at CN¥432 and the most bearish at CN¥354 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting NAURA Technology Group is an easy business to forecast or the the analysts are all using similar assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of NAURA Technology Group'shistorical trends, as the 38% annualised revenue growth to the end of 2024 is roughly in line with the 39% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 22% per year. So although NAURA Technology Group is expected to maintain its revenue growth rate, it's definitely expected 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 NAURA Technology Group following these results. 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¥398, 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. We have estimates - from multiple NAURA Technology Group analysts - going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for NAURA Technology Group that we have uncovered.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.