Analysts Have Made A Financial Statement On Ninebot Limited's (SHSE:689009) First-Quarter Report

Shareholders will be ecstatic, with their stake up 22% over the past week following Ninebot Limited's (SHSE:689009) latest quarterly results. Results overall were respectable, with statutory earnings of CN¥0.83 per share roughly in line with what the analysts had forecast. Revenues of CN¥2.6b came in 2.1% ahead of analyst predictions. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. 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 Ninebot

After the latest results, the seven analysts covering Ninebot are now predicting revenues of CN¥13.6b in 2024. If met, this would reflect a substantial 22% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 2.8% to CN¥1.01. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥13.2b and earnings per share (EPS) of CN¥1.08 in 2024. Overall it looks as though the analysts were a bit mixed on the latest results. Although there was a a substantial to revenue, the consensus also made a small dip in its earnings per share forecasts.

There's been no major changes to the price target of CN¥38.50, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Ninebot analyst has a price target of CN¥41.40 per share, while the most pessimistic values it at CN¥35.60. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Ninebot's growth to accelerate, with the forecast 30% annualised growth to the end of 2024 ranking favourably alongside historical growth of 9.2% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 19% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Ninebot to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at CN¥38.50, with the latest estimates not enough to have an impact on their price targets.

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. We have forecasts for Ninebot going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Ninebot 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.