Asia Cuanon Technology (Shanghai) Co.,Ltd. (SHSE:603378) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Revenues came in 9.8% below expectations, at CN¥902m. Statutory earnings per share were relatively better off, with a per-share profit of CN¥0.24 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
View our latest analysis for Asia Cuanon Technology (Shanghai)Ltd
Taking into account the latest results, the current consensus from Asia Cuanon Technology (Shanghai)Ltd's five analysts is for revenues of CN¥4.25b in 2024. This would reflect a major 34% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 153% to CN¥0.69. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥4.36b and earnings per share (EPS) of CN¥0.75 in 2024. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.
The consensus price target fell 6.9% to CN¥10.98, with the weaker earnings outlook clearly leading valuation estimates. 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 Asia Cuanon Technology (Shanghai)Ltd, with the most bullish analyst valuing it at CN¥12.60 and the most bearish at CN¥9.84 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Asia Cuanon Technology (Shanghai)Ltd's past performance and to peers in the same industry. The analysts are definitely expecting Asia Cuanon Technology (Shanghai)Ltd's growth to accelerate, with the forecast 26% 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 19% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Asia Cuanon Technology (Shanghai)Ltd 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. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Asia Cuanon Technology (Shanghai)Ltd's future valuation.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Asia Cuanon Technology (Shanghai)Ltd going out to 2025, and you can see them free on our platform here..
It is also worth noting that we have found 3 warning signs for Asia Cuanon Technology (Shanghai)Ltd 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.