It's shaping up to be a tough period for Fujian Star-net Communication Co., LTD. (SZSE:002396), which a week ago released some disappointing quarterly results that could have a notable impact on how the market views the stock. Fujian Star-net Communication missed analyst forecasts, with revenues of CN¥4.2b and statutory earnings per share (EPS) of CN¥0.19, falling short by 2.1% and 9.5% respectively. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Taking into account the latest results, the consensus forecast from Fujian Star-net Communication's four analysts is for revenues of CN¥18.9b in 2024. This reflects a decent 16% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 57% to CN¥0.93. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥18.0b and earnings per share (EPS) of CN¥0.98 in 2024. Overall it looks as though the analysts were a bit mixed on the latest results. Although there was a a decent to revenue, the consensus also made a small dip in its earnings per share forecasts.

The consensus price target fell 13% to CN¥17.08, suggesting that the analysts are primarily focused on earnings as the driver of value for this 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 Fujian Star-net Communication, with the most bullish analyst valuing it at CN¥18.15 and the most bearish at CN¥16.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Fujian Star-net Communication's growth to accelerate, with the forecast 35% annualised growth to the end of 2024 ranking favourably alongside historical growth of 14% per annum 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 21% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Fujian Star-net Communication to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Fujian Star-net Communication analysts - going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Fujian Star-net Communication you should be aware of.

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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.