As you might know, Great Microwave Technology Co., Ltd. (SHSE:688270) recently reported its yearly numbers. The result was fairly weak overall, with revenues of CN¥281m being 7.3% less than what the analyst had been modelling. This is an important time for investors, as they can track a company's performance in its report, look at what expert is 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 analyst has changed their mind on Great Microwave Technology after the latest results.
After the latest results, the sole analyst covering Great Microwave Technology are now predicting revenues of CN¥403.8m in 2024. If met, this would reflect a major 44% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 71% to CN¥0.81. Before this earnings report, the analyst had been forecasting revenues of CN¥424.2m and earnings per share (EPS) of CN¥1.12 in 2024. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a large cut to earnings per share estimates.
Despite the cuts to forecast earnings, there was no real change to the CN¥62.71 price target, showing that the analyst doesn't think the changes have a meaningful impact on its intrinsic value.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analyst is definitely expecting Great Microwave Technology's growth to accelerate, with the forecast 44% annualised growth to the end of 2024 ranking favourably alongside historical growth of 28% 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 23% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Great Microwave Technology to grow faster than the wider industry.
The Bottom Line
The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Great Microwave Technology. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on Great Microwave Technology. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.
You still need to take note of risks, for example - Great Microwave Technology has 3 warning signs (and 1 which is concerning) we think you should know about.
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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.