Suzhou Maxwell Technologies Co., Ltd. (SZSE:300751) shareholders are probably feeling a little disappointed, since its shares fell 6.1% to CN¥106 in the week after its latest first-quarter results. It was not a great result overall. While revenues of CN¥2.2b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 18% to hit CN¥0.93 per share. 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. 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 most recent consensus for Suzhou Maxwell Technologies from 16 analysts is for revenues of CN¥11.5b in 2024. If met, it would imply a huge 26% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 86% to CN¥6.37. In the lead-up to this report, the analysts had been modelling revenues of CN¥11.5b and earnings per share (EPS) of CN¥6.37 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
There were no changes to revenue or earnings estimates or the price target of CN¥124, suggesting that the company has met expectations in its recent result. 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. Currently, the most bullish analyst values Suzhou Maxwell Technologies at CN¥188 per share, while the most bearish prices it at CN¥75.00. 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.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 36% growth on an annualised basis. That is in line with its 39% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 23% per year. So it's pretty clear that Suzhou Maxwell Technologies is forecast to grow substantially faster than its 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. 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. The consensus price target held steady at CN¥124, 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 Suzhou Maxwell Technologies. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Suzhou Maxwell Technologies analysts - going out to 2026, and you can see them free on our platform here.
Even so, be aware that Suzhou Maxwell Technologies is showing 3 warning signs in our investment analysis , and 1 of those is a bit unpleasant...
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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.