37 Interactive Entertainment Network Technology Group Co., Ltd. (SZSE:002555) just released its latest quarterly report and things are not looking great. 37 Interactive Entertainment Network Technology Group missed earnings this time around, with CN¥4.1b revenue coming in 6.2% below what the analysts had modelled. Statutory earnings per share (EPS) of CN¥0.29 also fell short of expectations by 11%. 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.

After the latest results, the 16 analysts covering 37 Interactive Entertainment Network Technology Group are now predicting revenues of CN¥20.2b in 2025. If met, this would reflect a notable 13% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 37% to CN¥1.48. Before this earnings report, the analysts had been forecasting revenues of CN¥20.5b and earnings per share (EPS) of CN¥1.64 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.

The consensus price target held steady at CN¥21.44, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. Currently, the most bullish analyst values 37 Interactive Entertainment Network Technology Group at CN¥33.00 per share, while the most bearish prices it at CN¥12.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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. The analysts are definitely expecting 37 Interactive Entertainment Network Technology Group's growth to accelerate, with the forecast 10% annualised growth to the end of 2025 ranking favourably alongside historical growth of 5.9% 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 15% per year. So it's clear that despite the acceleration in growth, 37 Interactive Entertainment Network Technology Group is expected to grow meaningfully slower than the industry average.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for 37 Interactive Entertainment Network Technology Group. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at CN¥21.44, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for 37 Interactive Entertainment Network Technology Group 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 1 warning sign with 37 Interactive Entertainment Network Technology Group , and understanding this 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.