Micro-Tech (Nanjing) Co.,Ltd Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Investors in Micro-Tech (Nanjing) Co.,Ltd (SHSE:688029) had a good week, as its shares rose 3.2% to close at CN¥70.72 following the release of its yearly results. It looks like the results were a bit of a negative overall. While revenues of CN¥2.8b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 6.1% to hit CN¥2.94 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Micro-Tech (Nanjing)Ltd

Taking into account the latest results, the most recent consensus for Micro-Tech (Nanjing)Ltd from five analysts is for revenues of CN¥3.18b in 2025. If met, it would imply a decent 15% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 28% to CN¥3.76. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥3.29b and earnings per share (EPS) of CN¥3.78 in 2025. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

The average price target was reduced 10% to CN¥90.53, with the lower revenue forecasts indicating negative sentiment towards Micro-Tech (Nanjing)Ltd, even though earnings forecasts were unchanged. 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 Micro-Tech (Nanjing)Ltd at CN¥95.05 per share, while the most bearish prices it at CN¥86.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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 2025 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 16% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 17% annually. It's clear that while Micro-Tech (Nanjing)Ltd's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. With that said, earnings are more important to the long-term value of the business. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Micro-Tech (Nanjing)Ltd going out to 2026, and you can see them free on our platform here..

Before you take the next step you should know about the 1 warning sign for Micro-Tech (Nanjing)Ltd that we have uncovered.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.