The third-quarter results for BlueFocus Intelligent Communications Group Co., Ltd. (SZSE:300058) were released last week, making it a good time to revisit its performance. Revenues came in 2.9% below expectations, at CN¥15b. Statutory earnings per share were relatively better off, with a per-share profit of CN¥0.047 being roughly in line with analyst estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Taking into account the latest results, the most recent consensus for BlueFocus Intelligent Communications Group from five analysts is for revenues of CN¥72.6b in 2025. If met, it would imply a notable 18% increase on its revenue over the past 12 months. Earnings are expected to improve, with BlueFocus Intelligent Communications Group forecast to report a statutory profit of CN¥0.20 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥71.5b and earnings per share (EPS) of CN¥0.21 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 19% to CN¥6.93, suggesting the revised estimates are not indicative of a weaker long-term future for the business. 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. There are some variant perceptions on BlueFocus Intelligent Communications Group, with the most bullish analyst valuing it at CN¥7.00 and the most bearish at CN¥5.75 per share. This is a very narrow spread of estimates, implying either that BlueFocus Intelligent Communications Group is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the BlueFocus Intelligent Communications Group's past performance and to peers in the same industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 14% growth on an annualised basis. That is in line with its 13% 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 10% per year. So although BlueFocus Intelligent Communications Group is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for BlueFocus Intelligent Communications Group. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on BlueFocus Intelligent Communications Group. Long-term earnings power is much more important than next year's profits. We have forecasts for BlueFocus Intelligent Communications Group going out to 2026, and you can see them free on our platform here.

We also provide an overview of the BlueFocus Intelligent Communications Group Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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.