As you might know, Suzhou TFC Optical Communication Co., Ltd. (SZSE:300394) last week released its latest quarterly, and things did not turn out so great for shareholders. Earnings fell badly short of analyst estimates, with CN¥839m revenues missing by 19%, and statutory earnings per share (EPS) of CN¥0.58 falling short of forecasts by some -19%. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Taking into account the latest results, the current consensus from Suzhou TFC Optical Communication's 14 analysts is for revenues of CN¥5.75b in 2025. This would reflect a huge 84% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 78% to CN¥4.07. In the lead-up to this report, the analysts had been modelling revenues of CN¥5.85b and earnings per share (EPS) of CN¥4.13 in 2025. 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.

The consensus price target rose 5.8% to CN¥120despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Suzhou TFC Optical Communication's earnings by assigning a price premium. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Suzhou TFC Optical Communication analyst has a price target of CN¥145 per share, while the most pessimistic values it at CN¥93.00. 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 Suzhou TFC Optical Communication 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. It's clear from the latest estimates that Suzhou TFC Optical Communication's rate of growth is expected to accelerate meaningfully, with the forecast 63% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 32% 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 21% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Suzhou TFC Optical Communication 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Suzhou TFC Optical Communication. Long-term earnings power is much more important than next year's profits. We have forecasts for Suzhou TFC Optical Communication going out to 2026, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Suzhou TFC Optical Communication , and understanding them should be part of your investment process.

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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.