Firan Technology Group Corporation Just Beat Revenue Estimates By 7.6%

Firan Technology Group Corporation (TSE:FTG) shareholders are probably feeling a little disappointed, since its shares fell 4.1% to CA$5.39 in the week after its latest quarterly results. It was a workmanlike result, with revenues of CA$35m coming in 7.6% ahead of expectations, and statutory earnings per share of CA$0.04, in line with analyst appraisals. The analyst 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. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

View our latest analysis for Firan Technology Group

Taking into account the latest results, the most recent consensus for Firan Technology Group from solitary analyst is for revenues of CA$153.0m in 2024. If met, it would imply a reasonable 5.1% increase on its revenue over the past 12 months. Statutory earnings per share are expected to shrink 2.8% to CA$0.35 in the same period. In the lead-up to this report, the analyst had been modelling revenues of CA$146.0m and earnings per share (EPS) of CA$0.34 in 2024. It looks like there's been a modest increase in sentiment following the latest results, withthe analyst becoming a bit more optimistic in their predictions for both revenues and earnings.

With these upgrades, we're not surprised to see that the analyst has lifted their price target 17% to CA$7.00per share.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analyst is definitely expecting Firan Technology Group's growth to accelerate, with the forecast 6.9% annualised growth to the end of 2024 ranking favourably alongside historical growth of 1.2% 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 9.0% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Firan Technology Group is expected to grow slower than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Firan Technology Group's earnings potential next year. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Firan Technology Group. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Firan Technology Group that 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.