As you might know, Victory Giant Technology (HuiZhou)Co.,Ltd. (SZSE:300476) last week released its latest third-quarter, and things did not turn out so great for shareholders. Victory Giant Technology (HuiZhou)Co.Ltd missed earnings this time around, with CN¥2.8b revenue coming in 6.8% below what the analysts had modelled. Statutory earnings per share (EPS) of CN¥0.36 also fell short of expectations by 13%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Victory Giant Technology (HuiZhou)Co.Ltd after the latest results.
Following the latest results, Victory Giant Technology (HuiZhou)Co.Ltd's five analysts are now forecasting revenues of CN¥14.0b in 2025. This would be a huge 42% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 90% to CN¥1.89. In the lead-up to this report, the analysts had been modelling revenues of CN¥13.8b and earnings per share (EPS) of CN¥1.84 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
The consensus price target rose 6.3% to CN¥42.40, suggesting that higher earnings estimates flow through to the stock's valuation as well. 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. 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¥38.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Victory Giant Technology (HuiZhou)Co.Ltd's growth to accelerate, with the forecast 32% annualised growth to the end of 2025 ranking favourably alongside historical growth of 16% 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 biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Victory Giant Technology (HuiZhou)Co.Ltd's earnings potential next year. 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. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
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. 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..
You should always think about risks though. Case in point, we've spotted 1 warning sign for Victory Giant Technology (HuiZhou)Co.Ltd you should be aware of.
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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.
