As you might know, JCET Group Co., Ltd. (SHSE:600584) just kicked off its latest quarterly results with some very strong numbers. It was a decent earnings report, with revenues and statutory earnings per share (EPS) both performing well. Revenues were 18% higher than the analysts had forecast, at CN¥8.6b, while EPS of CN¥0.27 beat analyst models by 13%. 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.
Taking into account the latest results, the current consensus from JCET Group's 16 analysts is for revenues of CN¥35.0b in 2024. This would reflect a satisfactory 6.3% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 26% to CN¥1.12. Before this earnings report, the analysts had been forecasting revenues of CN¥32.8b and earnings per share (EPS) of CN¥1.14 in 2024. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a modest lift to to revenue forecasts.
Even though revenue forecasts increased, there was no change to the consensus price target of CN¥38.15, suggesting the analysts are focused on earnings as the driver of value creation. 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. The most optimistic JCET Group analyst has a price target of CN¥45.00 per share, while the most pessimistic values it at CN¥28.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting JCET Group's growth to accelerate, with the forecast 13% annualised growth to the end of 2024 ranking favourably alongside historical growth of 6.9% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 22% annually. So it's clear that despite the acceleration in growth, JCET Group is expected to grow meaningfully slower than the industry average.
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. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. The consensus price target held steady at CN¥38.15, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on JCET Group. Long-term earnings power is much more important than next year's profits. We have forecasts for JCET Group going out to 2026, and you can see them free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with JCET Group .
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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.