Investors in Suzhou Sushi Testing Group Co.,Ltd. (SZSE:300416) had a good week, as its shares rose 6.5% to close at CN¥14.23 following the release of its first-quarter results. Statutory earnings per share disappointed, coming in -30% short of expectations, at CN¥0.083. Fortunately revenue performance was a lot stronger at CN¥442m arriving 13% ahead of predictions. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Following the latest results, Suzhou Sushi Testing GroupLtd's six analysts are now forecasting revenues of CN¥2.60b in 2024. This would be a huge 23% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 28% to CN¥0.79. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥2.61b and earnings per share (EPS) of CN¥0.78 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at CN¥20.56. 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 Suzhou Sushi Testing GroupLtd at CN¥23.70 per share, while the most bearish prices it at CN¥17.29. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
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 analysts are definitely expecting Suzhou Sushi Testing GroupLtd's growth to accelerate, with the forecast 31% annualised growth to the end of 2024 ranking favourably alongside historical growth of 23% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 17% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Suzhou Sushi Testing GroupLtd is expected to grow much faster than its industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at CN¥20.56, 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 Sushi Testing GroupLtd. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Suzhou Sushi Testing GroupLtd analysts - going out to 2026, and you can see them free on our platform here.
Even so, be aware that Suzhou Sushi Testing GroupLtd is showing 1 warning sign 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.