Last week saw the newest quarterly earnings release from Asia Cuanon Technology (Shanghai) Co.,Ltd. (SHSE:603378), an important milestone in the company's journey to build a stronger business. Asia Cuanon Technology (Shanghai)Ltd reported a serious miss, with revenue of CN¥295m falling a huge 33% short of analyst estimates. The bright side is that statutory earnings per share of CN¥0.14 were in line with forecasts. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Asia Cuanon Technology (Shanghai)Ltd after the latest results.

Following the latest results, Asia Cuanon Technology (Shanghai)Ltd's five analysts are now forecasting revenues of CN¥3.88b in 2024. This would be a substantial 33% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Asia Cuanon Technology (Shanghai)Ltd forecast to report a statutory profit of CN¥0.64 per share. In the lead-up to this report, the analysts had been modelling revenues of CN¥4.04b and earnings per share (EPS) of CN¥0.65 in 2024. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.

It will come as no surprise then, that the consensus price target fell 6.9% to CN¥10.98following these changes. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Asia Cuanon Technology (Shanghai)Ltd analyst has a price target of CN¥12.60 per share, while the most pessimistic values it at CN¥9.84. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Asia Cuanon Technology (Shanghai)Ltd is an easy business to forecast or the the analysts are all using similar assumptions.

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. The analysts are definitely expecting Asia Cuanon Technology (Shanghai)Ltd's growth to accelerate, with the forecast 47% annualised growth to the end of 2024 ranking favourably alongside historical growth of 7.1% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 16% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Asia Cuanon Technology (Shanghai)Ltd to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also downgraded Asia Cuanon Technology (Shanghai)Ltd's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. 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. At Simply Wall St, we have a full range of analyst estimates for Asia Cuanon Technology (Shanghai)Ltd going out to 2026, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 2 warning signs for Asia Cuanon Technology (Shanghai)Ltd you should be aware of, and 1 of them is concerning.

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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.