Circuit Fabology Microelectronics Equipment Co.,Ltd. (SHSE:688630) missed earnings with its latest third-quarter results, disappointing overly-optimistic forecasters. Results look to have been somewhat negative - revenue fell 8.2% short of analyst estimates at CN¥268m, and statutory earnings of CN¥0.41 per share missed forecasts by 2.4%. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

After the latest results, the nine analysts covering Circuit Fabology Microelectronics EquipmentLtd are now predicting revenues of CN¥1.55b in 2025. If met, this would reflect a major 52% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 62% to CN¥2.68. In the lead-up to this report, the analysts had been modelling revenues of CN¥1.56b and earnings per share (EPS) of CN¥2.71 in 2025. 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.

With no major changes to earnings forecasts, the consensus price target fell 12% to CN¥62.30, suggesting that the analysts might have previously been hoping for an earnings upgrade. 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 Circuit Fabology Microelectronics EquipmentLtd analyst has a price target of CN¥70.00 per share, while the most pessimistic values it at CN¥54.60. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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 analysts are definitely expecting Circuit Fabology Microelectronics EquipmentLtd's growth to accelerate, with the forecast 40% annualised growth to the end of 2025 ranking favourably alongside historical growth of 28% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 23% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Circuit Fabology Microelectronics EquipmentLtd 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. 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. 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 Circuit Fabology Microelectronics EquipmentLtd analysts - going out to 2026, and you can see them free on our platform here.

Even so, be aware that Circuit Fabology Microelectronics EquipmentLtd is showing 3 warning signs in our investment analysis , and 1 of those is significant...

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.