TianJin 712 Communication & Broadcasting Co., Ltd. (SHSE:603712) missed earnings with its latest yearly results, disappointing overly-optimistic forecasters. TianJin 712 Communication & Broadcasting delivered a grave earnings miss, with both revenues (CN¥3.3b) and statutory earnings per share (CN¥0.57) falling badly short of analyst expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Taking into account the latest results, the consensus forecast from TianJin 712 Communication & Broadcasting's six analysts is for revenues of CN¥4.95b in 2024. This reflects a major 51% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 136% to CN¥1.35. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥5.50b and earnings per share (EPS) of CN¥1.39 in 2024. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

Despite the cuts to forecast earnings, there was no real change to the CN¥31.24 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on TianJin 712 Communication & Broadcasting, with the most bullish analyst valuing it at CN¥32.00 and the most bearish at CN¥30.47 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that TianJin 712 Communication & Broadcasting's rate of growth is expected to accelerate meaningfully, with the forecast 51% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 19% p.a. 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 23% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect TianJin 712 Communication & Broadcasting 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 held steady at CN¥31.24, with the latest estimates not enough to have an impact on their price targets.

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 TianJin 712 Communication & Broadcasting analysts - going out to 2026, and you can see them free on our platform here.

We also provide an overview of the TianJin 712 Communication & Broadcasting Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.