Last week saw the newest quarterly earnings release from Infore Environment Technology Group Co., Ltd. (SZSE:000967), an important milestone in the company's journey to build a stronger business. Results look mixed - while revenue fell marginally short of analyst estimates at CN¥3.2b, statutory earnings were in line with expectations, at CN¥0.16 per share. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Following the latest results, Infore Environment Technology Group's twin analysts are now forecasting revenues of CN¥13.9b in 2024. This would be a decent 9.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 31% to CN¥0.21. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥14.8b and earnings per share (EPS) of CN¥0.28 in 2024. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a large cut to earnings per share numbers.

The consensus price target fell 12% to CN¥5.31, with the weaker earnings outlook clearly leading valuation estimates.

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. For example, we noticed that Infore Environment Technology Group's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 20% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 0.9% a year 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 revenue grow 16% per year. So while Infore Environment Technology Group's revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Infore Environment Technology Group. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. 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 analyst estimates for Infore Environment Technology Group going out as far as 2026, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Infore Environment Technology Group that you need to take into consideration.

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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.