Earnings Miss: Ningbo Joyson Electronic Corp. Missed EPS By 8.4% And Analysts Are Revising Their Forecasts

It's shaping up to be a tough period for Ningbo Joyson Electronic Corp. (SHSE:600699), which a week ago released some disappointing quarterly results that could have a notable impact on how the market views the stock. Results look to have been somewhat negative - revenue fell 4.9% short of analyst estimates at CN¥14b, and statutory earnings of CN¥0.23 per share missed forecasts by 8.4%. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Ningbo Joyson Electronic

Taking into account the latest results, the current consensus from Ningbo Joyson Electronic's 19 analysts is for revenues of CN¥58.7b in 2024. This would reflect a credible 5.2% increase on its revenue over the past 12 months. Per-share earnings are expected to ascend 15% to CN¥1.02. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥60.0b and earnings per share (EPS) of CN¥1.01 in 2024. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.

The average price target was steady at CN¥20.78even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Ningbo Joyson Electronic analyst has a price target of CN¥26.00 per share, while the most pessimistic values it at CN¥15.00. 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 Ningbo Joyson Electronic shareholders.

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. For example, we noticed that Ningbo Joyson Electronic's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 11% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 2.0% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 18% annually for the foreseeable future. So although Ningbo Joyson Electronic's revenue growth is expected to improve, it is still expected to grow slower than the 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. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Still, earnings are more important to the intrinsic value of the business. The consensus price target held steady at CN¥20.78, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Ningbo Joyson Electronic 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 3 warning signs with Ningbo Joyson Electronic , 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.