It's been a good week for NARI Technology Co., Ltd. (SHSE:600406) shareholders, because the company has just released its latest quarterly results, and the shares gained 3.6% to CN¥24.62. Results look mixed - while revenue fell marginally short of analyst estimates at CN¥12b, statutory earnings beat expectations 5.9%, with NARI Technology reporting profits of CN¥0.27 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Taking into account the latest results, the consensus forecast from NARI Technology's 19 analysts is for revenues of CN¥57.0b in 2024. This reflects a reasonable 6.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 7.6% to CN¥0.99. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥57.3b and earnings per share (EPS) of CN¥1.01 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of CN¥27.84, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values NARI Technology at CN¥30.50 per share, while the most bearish prices it at CN¥25.85. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting NARI Technology 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 NARI Technology'shistorical trends, as the 14% annualised revenue growth to the end of 2024 is roughly in line with the 12% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 16% annually. It's clear that while NARI Technology's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at CN¥27.84, with the latest estimates not enough to have an impact on their price targets.

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 NARI Technology analysts - going out to 2026, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with NARI Technology , and understanding this should be part of your investment process.

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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.