Inspur Electronic Information Industry Co., Ltd. (SZSE:000977) shareholders are probably feeling a little disappointed, since its shares fell 5.9% to CN¥35.51 in the week after its latest full-year results. Inspur Electronic Information Industry missed revenue estimates by 5.3%, coming in atCN¥66b, although statutory earnings per share (EPS) of CN¥1.18 beat expectations, coming in 5.8% ahead of analyst estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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 current consensus from Inspur Electronic Information Industry's eleven analysts is for revenues of CN¥75.9b in 2024. This would reflect a solid 15% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 23% to CN¥1.48. Before this earnings report, the analysts had been forecasting revenues of CN¥80.4b and earnings per share (EPS) of CN¥1.61 in 2024. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.
Despite the cuts to forecast earnings, there was no real change to the CN¥39.33 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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 Inspur Electronic Information Industry analyst has a price target of CN¥47.00 per share, while the most pessimistic values it at CN¥31.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Inspur Electronic Information Industry's past performance and to peers in the same industry. The analysts are definitely expecting Inspur Electronic Information Industry's growth to accelerate, with the forecast 15% annualised growth to the end of 2024 ranking favourably alongside historical growth of 6.8% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 17% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Inspur Electronic Information Industry is expected to grow at about the same rate as the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Inspur Electronic Information Industry. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as 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 estimates - from multiple Inspur Electronic Information Industry analysts - going out to 2026, and you can see them free on our platform here.
It might also be worth considering whether Inspur Electronic Information Industry's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
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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.