As you might know, Changsha Jingjia Microelectronics Co., Ltd. (SZSE:300474) last week released its latest annual, and things did not turn out so great for shareholders. Results showed a clear earnings miss, with CN¥713m revenue coming in 3.0% lower than what the analystsexpected. Statutory earnings per share (EPS) of CN¥0.13 missed the mark badly, arriving some 33% below what was expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the consensus forecast from Changsha Jingjia Microelectronics' three analysts is for revenues of CN¥1.55b in 2024. This reflects a major 117% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 426% to CN¥0.69. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥1.57b and earnings per share (EPS) of CN¥0.69 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.
The consensus price target fell 20% to CN¥76.84, suggesting that the analysts might have been a bit enthusiastic in their previous valuation - or they were expecting the company to provide stronger guidance in the annual results.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Changsha Jingjia Microelectronics' rate of growth is expected to accelerate meaningfully, with the forecast 117% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 17% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 23% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Changsha Jingjia Microelectronics to grow faster than the wider 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. 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 estimates - from multiple Changsha Jingjia Microelectronics analysts - 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 2 warning signs with Changsha Jingjia Microelectronics , and understanding these 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.