Earnings Miss: Hefei Meyer Optoelectronic Technology Inc. Missed EPS By 6.4% And Analysts Are Revising Their Forecasts

Shareholders might have noticed that Hefei Meyer Optoelectronic Technology Inc. (SZSE:002690) filed its annual result this time last week. The early response was not positive, with shares down 3.8% to CN¥18.59 in the past week. It looks like the results were a bit of a negative overall. While revenues of CN¥2.4b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 6.4% to hit CN¥0.85 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Hefei Meyer Optoelectronic Technology after the latest results.

See our latest analysis for Hefei Meyer Optoelectronic Technology

Taking into account the latest results, the most recent consensus for Hefei Meyer Optoelectronic Technology from ten analysts is for revenues of CN¥2.79b in 2024. If met, it would imply a meaningful 15% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to grow 14% to CN¥0.97. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥2.81b and earnings per share (EPS) of CN¥1.04 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at CN¥25.13, 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 Hefei Meyer Optoelectronic Technology analyst has a price target of CN¥35.49 per share, while the most pessimistic values it at CN¥16.20. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 15% growth on an annualised basis. That is in line with its 13% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 19% annually. So although Hefei Meyer Optoelectronic Technology is expected to maintain its revenue growth rate, it's forecast to grow slower 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at CN¥25.13, 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 Hefei Meyer Optoelectronic Technology going out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Hefei Meyer Optoelectronic Technology that you need to be mindful 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.