As you might know, Maxscend Microelectronics Company Limited (SZSE:300782) last week released its latest quarterly, and things did not turn out so great for shareholders. The analysts look to have been far too optimistic in the lead-up to these results, with revenues of (CN¥1.1b) coming in 21% below what they had expected. Statutory earnings per share of CN¥0.13 fell 73% short. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Maxscend Microelectronics after the latest results.
After the latest results, the 18 analysts covering Maxscend Microelectronics are now predicting revenues of CN¥6.20b in 2025. If met, this would reflect a huge 33% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 95% to CN¥2.66. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥6.37b and earnings per share (EPS) of CN¥2.70 in 2025. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.
The average price target was steady at CN¥95.97even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Maxscend Microelectronics, with the most bullish analyst valuing it at CN¥162 and the most bearish at CN¥55.00 per share. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Maxscend Microelectronics' growth to accelerate, with the forecast 25% annualised growth to the end of 2025 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 Maxscend Microelectronics 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. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Even so, long term profitability is more important for the value creation process. The consensus price target held steady at CN¥95.97, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Maxscend Microelectronics. Long-term earnings power is much more important than next year's profits. We have forecasts for Maxscend Microelectronics going out to 2026, and you can see them free on our platform here.
Even so, be aware that Maxscend Microelectronics is showing 3 warning signs in our investment analysis , and 2 of those shouldn't be ignored...
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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.
