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China Transinfo Technology Co., Ltd (SZSE:002373) Third-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For Next Year

中国中交信訊科技股份有限公司(SZSE:002373)の第三四半期決算が発表されました:次年度のアナリスト予測はこちらです

Simply Wall St ·  11/01 07:38

It's been a good week for China Transinfo Technology Co., Ltd (SZSE:002373) shareholders, because the company has just released its latest third-quarter results, and the shares gained 4.6% to CN¥10.28. China Transinfo Technology's revenues suffered a miss, falling 13% short of forecasts, at CN¥1.8b. Statutory earnings per share (EPS) however performed much better, reaching break-even. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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SZSE:002373 Earnings and Revenue Growth October 31st 2024

Following the latest results, China Transinfo Technology's seven analysts are now forecasting revenues of CN¥9.99b in 2025. This would be a sizeable 26% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 161% to CN¥0.39. Before this earnings report, the analysts had been forecasting revenues of CN¥10.0b and earnings per share (EPS) of CN¥0.39 in 2025. 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.

There were no changes to revenue or earnings estimates or the price target of CN¥9.71, suggesting that the company has met expectations in its recent result. 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. There are some variant perceptions on China Transinfo Technology, with the most bullish analyst valuing it at CN¥13.00 and the most bearish at CN¥5.10 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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. For example, we noticed that China Transinfo Technology's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 20% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 4.1% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 15% per year. Not only are China Transinfo Technology's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at CN¥9.71, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for China Transinfo Technology going out to 2026, and you can see them free on our platform here.

You can also see our analysis of China Transinfo Technology's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.

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