Earnings Miss: Here's What Tianrun Industry Technology Co., Ltd. (SZSE:002283) Analysts Are Forecasting For This Year

It's shaping up to be a tough period for Tianrun Industry Technology Co., Ltd. (SZSE:002283), which a week ago released some disappointing full-year results that could have a notable impact on how the market views the stock. Tianrun Industry Technology missed analyst forecasts, with revenues of CN¥4.0b and statutory earnings per share (EPS) of CN¥0.35, falling short by 5.1% and 5.4% respectively. 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 collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.

Check out our latest analysis for Tianrun Industry Technology

Taking into account the latest results, the consensus forecast from Tianrun Industry Technology's lone analyst is for revenues of CN¥4.60b in 2024. This reflects a notable 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 34% to CN¥0.46. Before this earnings report, the analyst had been forecasting revenues of CN¥4.91b and earnings per share (EPS) of CN¥0.50 in 2024. The analyst are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

The consensus price target fell 15% to CN¥7.51, with the weaker earnings outlook clearly leading valuation estimates.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Tianrun Industry Technology's rate of growth is expected to accelerate meaningfully, with the forecast 15% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 0.07% p.a. 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 19% per year. So it's clear that despite the acceleration in growth, Tianrun Industry Technology is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Tianrun Industry Technology's future valuation.

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 analyst estimates for Tianrun Industry Technology going out as far as 2025, 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 1 warning sign with Tianrun Industry Technology , and understanding this 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.