Beijing Dabeinong Technology Group Co.,Ltd. (SZSE:002385) Just Reported, And Analysts Assigned A CN¥7.83 Price Target

Beijing Dabeinong Technology Group Co.,Ltd. (SZSE:002385) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. Statutory earnings fell substantially short of expectations, with revenues of CN¥6.7b missing forecasts by 25%. Losses exploded, with a per-share loss of CN¥0.05 some 104% below prior forecasts. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Beijing Dabeinong Technology GroupLtd

Following the latest results, Beijing Dabeinong Technology GroupLtd's eight analysts are now forecasting revenues of CN¥41.0b in 2024. This would be a substantial 27% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Beijing Dabeinong Technology GroupLtd forecast to report a statutory profit of CN¥0.17 per share. Before this earnings report, the analysts had been forecasting revenues of CN¥41.7b and earnings per share (EPS) of CN¥0.23 in 2024. So there's definitely been a decline in sentiment after the latest results, noting the pretty serious reduction to new EPS forecasts.

It might be a surprise to learn that the consensus price target fell 16% to CN¥7.83, with the analysts clearly linking lower forecast earnings to the performance of the stock price. 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. Currently, the most bullish analyst values Beijing Dabeinong Technology GroupLtd at CN¥10.00 per share, while the most bearish prices it at CN¥5.61. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Beijing Dabeinong Technology GroupLtd's past performance and to peers in the same industry. The analysts are definitely expecting Beijing Dabeinong Technology GroupLtd's growth to accelerate, with the forecast 37% annualised growth to the end of 2024 ranking favourably alongside historical growth of 15% per annum 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 9.2% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Beijing Dabeinong Technology GroupLtd 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 Beijing Dabeinong Technology GroupLtd. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Beijing Dabeinong Technology GroupLtd. Long-term earnings power is much more important than next year's profits. We have forecasts for Beijing Dabeinong Technology GroupLtd going out to 2026, and you can see them free on our platform here.

Even so, be aware that Beijing Dabeinong Technology GroupLtd is showing 1 warning sign in our investment analysis , 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.