The analysts might have been a bit too bullish on Imeik Technology Development Co.,Ltd. (SZSE:300896), given that the company fell short of expectations when it released its third-quarter results last week. It looks like a clear earnings miss, with both revenues and earnings falling well short of analyst predictions. Revenues of CN¥719m missed by 17%, and statutory earnings per share of CN¥1.54 fell short of forecasts by 19%. 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 current consensus from Imeik Technology DevelopmentLtd's 21 analysts is for revenues of CN¥4.15b in 2025. This would reflect a substantial 35% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 32% to CN¥8.85. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥4.47b and earnings per share (EPS) of CN¥9.45 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.
The analysts made no major changes to their price target of CN¥263, suggesting the downgrades are not expected to have a long-term impact on Imeik Technology DevelopmentLtd's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Imeik Technology DevelopmentLtd at CN¥472 per share, while the most bearish prices it at CN¥180. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
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. We would highlight that Imeik Technology DevelopmentLtd's revenue growth is expected to slow, with the forecast 27% annualised growth rate until the end of 2025 being well below the historical 34% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 23% annually. Factoring in the forecast slowdown in growth, it looks like Imeik Technology DevelopmentLtd is forecast to grow at about the same rate as the wider 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. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as 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.
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 estimates - from multiple Imeik Technology DevelopmentLtd analysts - going out to 2026, and you can see them free on our platform here.
Even so, be aware that Imeik Technology DevelopmentLtd 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.
