Beijing Yuanliu Hongyuan Electronic Technology Co., Ltd. (SHSE:603267) just released its latest annual report and things are not looking great. Unfortunately, Beijing Yuanliu Hongyuan Electronic Technology delivered a serious earnings miss. Revenues of CN¥1.7b were 12% below expectations, and statutory earnings per share of CN¥1.18 missed estimates by 46%. 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. 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 Beijing Yuanliu Hongyuan Electronic Technology's dual analysts is for revenues of CN¥2.09b in 2024. This would reflect a huge 24% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 172% to CN¥3.20. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥2.47b and earnings per share (EPS) of CN¥2.99 in 2024. It looks like there's been a meaningful change to the consensus view following the recent earnings report, with the analysts making a real cut to to revenue forecasts and a small increase to to next year's earnings estimates.
The analysts have cut their price target 17% to CN¥61.45per share, suggesting that the declining revenue was a more crucial indicator than the expected improvement in earnings.
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. The analysts are definitely expecting Beijing Yuanliu Hongyuan Electronic Technology's growth to accelerate, with the forecast 24% annualised growth to the end of 2024 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. Factoring in the forecast acceleration in revenue, it's pretty clear that Beijing Yuanliu Hongyuan Electronic Technology is expected to grow much faster than its industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Beijing Yuanliu Hongyuan Electronic Technology's earnings potential next year. They also downgraded Beijing Yuanliu Hongyuan Electronic Technology's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Even so, long term profitability is more important for the value creation process. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Beijing Yuanliu Hongyuan Electronic Technology going out as far as 2026, and you can see them free on our platform here.
Even so, be aware that Beijing Yuanliu Hongyuan Electronic Technology is showing 2 warning signs 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.