Jiangsu Zhongtian Technology Co., Ltd. (SHSE:600522) Second-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

As you might know, Jiangsu Zhongtian Technology Co., Ltd. (SHSE:600522) recently reported its second-quarter numbers. Results look mixed - while revenue fell marginally short of analyst estimates at CN¥13b, statutory earnings were in line with expectations, at CN¥0.91 per share. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Jiangsu Zhongtian Technology

Taking into account the latest results, the current consensus from Jiangsu Zhongtian Technology's ten analysts is for revenues of CN¥52.2b in 2024. This would reflect a decent 13% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 35% to CN¥1.05. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥52.4b and earnings per share (EPS) of CN¥1.15 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at CN¥19.46, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 Jiangsu Zhongtian Technology analyst has a price target of CN¥22.61 per share, while the most pessimistic values it at CN¥16.59. 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 Jiangsu Zhongtian 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 analysts are definitely expecting Jiangsu Zhongtian Technology's growth to accelerate, with the forecast 27% annualised growth to the end of 2024 ranking favourably alongside historical growth of 2.5% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 16% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Jiangsu Zhongtian Technology is expected to grow much faster than its 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, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at CN¥19.46, 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 Jiangsu Zhongtian Technology going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Jiangsu Zhongtian 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.