Jiangsu Nata Opto-electronic Material Co., Ltd. Just Missed Earnings - But Analysts Have Updated Their Models

Shareholders might have noticed that Jiangsu Nata Opto-electronic Material Co., Ltd. (SZSE:300346) filed its full-year result this time last week. The early response was not positive, with shares down 7.9% to CN¥24.24 in the past week. Statutory earnings per share fell badly short of expectations, coming in at CN¥0.39, some 21% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at CN¥1.7b. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Jiangsu Nata Opto-electronic Material

Following the latest results, Jiangsu Nata Opto-electronic Material's three analysts are now forecasting revenues of CN¥2.05b in 2024. This would be a sizeable 20% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 29% to CN¥0.50. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥2.09b and earnings per share (EPS) of CN¥0.58 in 2024. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a real cut to EPS estimates.

Despite cutting their earnings forecasts,the analysts have lifted their price target 92% to CN¥29.00, suggesting that these impacts are not expected to weigh on the stock's value in the long term.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Jiangsu Nata Opto-electronic Material's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 20% growth on an annualised basis. This is compared to a historical growth rate of 39% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 16% per year. Even after the forecast slowdown in growth, it seems obvious that Jiangsu Nata Opto-electronic Material is also expected 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 Jiangsu Nata Opto-electronic Material. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 Jiangsu Nata Opto-electronic Material going out to 2026, and you can see them free on our platform here..

You can also see our analysis of Jiangsu Nata Opto-electronic Material's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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.