The analysts might have been a bit too bullish on Yonyou Network Technology Co.,Ltd. (SHSE:600588), given that the company fell short of expectations when it released its third-quarter results last week. Statutory earnings fell substantially short of expectations, with revenues of CN¥1.9b missing forecasts by 26%. Losses exploded, with a per-share loss of CN¥0.20 some 900% below prior forecasts. 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.

Taking into account the latest results, the current consensus from Yonyou Network TechnologyLtd's 22 analysts is for revenues of CN¥12.3b in 2025. This would reflect a substantial 25% increase on its revenue over the past 12 months. Earnings are expected to improve, with Yonyou Network TechnologyLtd forecast to report a statutory profit of CN¥0.12 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥12.5b and earnings per share (EPS) of CN¥0.12 in 2025. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.

The consensus has reconfirmed its price target of CN¥11.65, showing that the analysts don't expect weaker revenue expectations next year to have a material impact on Yonyou Network TechnologyLtd's market value. 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 Yonyou Network TechnologyLtd, with the most bullish analyst valuing it at CN¥16.48 and the most bearish at CN¥8.80 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. The analysts are definitely expecting Yonyou Network TechnologyLtd's growth to accelerate, with the forecast 20% annualised growth to the end of 2025 ranking favourably alongside historical growth of 4.3% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 20% per year. Yonyou Network TechnologyLtd is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. Even so, earnings per share are more important to the intrinsic value of the business. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Yonyou Network TechnologyLtd going out to 2026, and you can see them free on our platform here..

You can also see whether Yonyou Network TechnologyLtd is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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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.