Suzhou Maxwell Technologies Co., Ltd. (SZSE:300751) just released its latest third-quarter report and things are not looking great. It looks like quite a negative result overall, with both revenues and earnings falling well short of analyst predictions. Revenues of CN¥2.9b missed by 13%, and statutory earnings per share of CN¥1.07 fell short of forecasts by 37%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the most recent consensus for Suzhou Maxwell Technologies from 14 analysts is for revenues of CN¥14.8b in 2025. If met, it would imply a substantial 38% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 75% to CN¥6.03. In the lead-up to this report, the analysts had been modelling revenues of CN¥15.1b and earnings per share (EPS) of CN¥6.12 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at CN¥101. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Suzhou Maxwell Technologies analyst has a price target of CN¥155 per share, while the most pessimistic values it at CN¥53.00. 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.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Suzhou Maxwell Technologies' revenue growth is expected to slow, with the forecast 29% annualised growth rate until the end of 2025 being well below the historical 40% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 23% annually. Even after the forecast slowdown in growth, it seems obvious that Suzhou Maxwell Technologies is also expected 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.
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 Suzhou Maxwell Technologies going out to 2026, and you can see them free on our platform here.
You still need to take note of risks, for example - Suzhou Maxwell Technologies has 4 warning signs (and 2 which make us uncomfortable) we think you should know about.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
