Victory Giant Technology (HuiZhou)Co.,Ltd. (SZSE:300476) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. The results were mixed; although revenues of CN¥2.5b fell 13% short of what the analysts had predicted, per-share (statutory) earnings of CN¥0.29 beat expectations by 32%. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Following the latest results, Victory Giant Technology (HuiZhou)Co.Ltd's four analysts are now forecasting revenues of CN¥11.3b in 2024. This would be a substantial 24% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 43% to CN¥1.31. Before this earnings report, the analysts had been forecasting revenues of CN¥11.5b and earnings per share (EPS) of CN¥1.30 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at CN¥39.90. 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 Victory Giant Technology (HuiZhou)Co.Ltd analyst has a price target of CN¥46.80 per share, while the most pessimistic values it at CN¥33.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Victory Giant Technology (HuiZhou)Co.Ltd's growth to accelerate, with the forecast 54% annualised growth to the end of 2024 ranking favourably alongside historical growth of 17% 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 18% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Victory Giant Technology (HuiZhou)Co.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. Happily, there were no major changes to revenue forecasts, with the business still expected to 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 Victory Giant Technology (HuiZhou)Co.Ltd. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Victory Giant Technology (HuiZhou)Co.Ltd going out to 2026, and you can see them free on our platform here..

Even so, be aware that Victory Giant Technology (HuiZhou)Co.Ltd is showing 1 warning sign in our investment analysis , 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.