Last week saw the newest first-quarter earnings release from Empyrean Technology Co., Ltd. (SZSE:301269), an important milestone in the company's journey to build a stronger business. It was a mildly positive result, with revenues exceeding expectations at CN¥160m, while statutory earnings per share (EPS) of CN¥0.39 were in line with analyst forecasts. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for Empyrean Technology
Taking into account the latest results, the most recent consensus for Empyrean Technology from nine analysts is for revenues of CN¥1.09b in 2023 which, if met, would be a major 27% increase on its sales over the past 12 months. Statutory earnings per share are predicted to surge 38% to CN¥0.50. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥1.09b and earnings per share (EPS) of CN¥0.50 in 2023. 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¥128, suggesting that the company has met expectations in its recent result. 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 Empyrean Technology analyst has a price target of CN¥155 per share, while the most pessimistic values it at CN¥107. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Empyrean Technology shareholders.
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 period to the end of 2023 brings more of the same, according to the analysts, with revenue forecast to display 37% growth on an annualised basis. That is in line with its 39% annual growth over the past year. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 22% annually. So although Empyrean Technology is expected to maintain its revenue growth rate, it's definitely expected 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. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than 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. At Simply Wall St, we have a full range of analyst estimates for Empyrean Technology going out to 2024, and you can see them free on our platform here..
You still need to take note of risks, for example - Empyrean Technology has 1 warning sign we think you should be aware of.
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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.