Investors in G-bits Network Technology (Xiamen) Co., Ltd. (SHSE:603444) had a good week, as its shares rose 3.4% to close at CN¥190 following the release of its half-yearly results. Revenues were CN¥2.0b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at CN¥3.66, an impressive 21% ahead of estimates. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Taking into account the latest results, the most recent consensus for G-bits Network Technology (Xiamen) from 16 analysts is for revenues of CN¥4.10b in 2024. If met, it would imply a solid 8.1% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 4.7% to CN¥14.11. In the lead-up to this report, the analysts had been modelling revenues of CN¥4.01b and earnings per share (EPS) of CN¥14.69 in 2024. So it's pretty clear consensus is mixed on G-bits Network Technology (Xiamen) after the latest results; whilethe analysts lifted revenue numbers, they also administered a small dip in per-share earnings expectations.

The consensus price target was unchanged at CN¥235, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. 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. The most optimistic G-bits Network Technology (Xiamen) analyst has a price target of CN¥331 per share, while the most pessimistic values it at CN¥191. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await G-bits Network Technology (Xiamen) shareholders.

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. We can infer from the latest estimates that forecasts expect a continuation of G-bits Network Technology (Xiamen)'shistorical trends, as the 17% annualised revenue growth to the end of 2024 is roughly in line with the 16% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 13% annually. So it's pretty clear that G-bits Network Technology (Xiamen) is forecast to grow substantially faster than its 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. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at CN¥235, 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 forecasts for G-bits Network Technology (Xiamen) going out to 2026, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, 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.