Ningbo Deye Technology Group Co., Ltd. Beat Revenue Forecasts By 18%: Here's What Analysts Are Forecasting Next

It's been a pretty great week for Ningbo Deye Technology Group Co., Ltd. (SHSE:605117) shareholders, with its shares surging 11% to CN¥91.16 in the week since its latest first-quarter results. Ningbo Deye Technology Group beat revenue forecasts by a solid 18% to hit CN¥1.9b. Statutory earnings per share came in at CN¥4.17, in line with expectations. The analysts 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Ningbo Deye Technology Group

Taking into account the latest results, the most recent consensus for Ningbo Deye Technology Group from seven analysts is for revenues of CN¥9.98b in 2024. If met, it would imply a sizeable 37% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 27% to CN¥4.82. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥11.7b and earnings per share (EPS) of CN¥6.57 in 2024. Indeed, we can see that the analysts are a lot more bearish about Ningbo Deye Technology Group's prospects following the latest results, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

It'll come as no surprise then, to learn that the analysts have cut their price target 44% to CN¥93.49. 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 Ningbo Deye Technology Group analyst has a price target of CN¥93.98 per share, while the most pessimistic values it at CN¥93.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Ningbo Deye Technology Group is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Ningbo Deye Technology Group's past performance and to peers in the same industry. It's clear from the latest estimates that Ningbo Deye Technology Group's rate of growth is expected to accelerate meaningfully, with the forecast 52% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 32% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 18% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Ningbo Deye Technology Group to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Ningbo Deye Technology Group. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Ningbo Deye Technology Group's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Ningbo Deye Technology Group going out to 2026, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 2 warning signs for Ningbo Deye Technology Group (of which 1 is significant!) you should know about.

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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.