The analysts might have been a bit too bullish on Siglent Technologies CO.,Ltd. (SHSE:688112), given that the company fell short of expectations when it released its full-year results last week. Siglent TechnologiesLtd missed analyst forecasts, with revenues of CN¥483m and statutory earnings per share (EPS) of CN¥0.98, falling short by 7.8% and 8.3% respectively. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Siglent TechnologiesLtd after the latest results.
Taking into account the latest results, the current consensus from Siglent TechnologiesLtd's six analysts is for revenues of CN¥608.7m in 2024. This would reflect a sizeable 26% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 26% to CN¥1.23. In the lead-up to this report, the analysts had been modelling revenues of CN¥702.5m and earnings per share (EPS) of CN¥1.62 in 2024. It looks like sentiment has declined substantially in the aftermath of these results, with a substantial drop in revenue estimates and a pretty serious reduction to earnings per share numbers as well.
The consensus price target fell 29% to CN¥44.29, with the weaker earnings outlook clearly leading valuation estimates.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Siglent TechnologiesLtd's past performance and to peers in the same industry. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 26% growth on an annualised basis. That is in line with its 22% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 19% annually. So although Siglent TechnologiesLtd is expected to maintain its revenue growth rate, it's definitely expected 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. They also downgraded Siglent TechnologiesLtd's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
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. We have estimates - from multiple Siglent TechnologiesLtd analysts - going out to 2025, and you can see them free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with Siglent TechnologiesLtd .
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