Crystal Clear Electronic Material Co.,Ltd Reported A Surprise Loss, And Analysts Have Updated Their Forecasts

It's been a good week for Crystal Clear Electronic Material Co.,Ltd (SZSE:300655) shareholders, because the company has just released its latest first-quarter results, and the shares gained 6.4% to CN¥7.50. Revenues missed expectations, with revenue of CN¥330m falling 13% short of forecasts. Earnings correspondingly dipped, with Crystal Clear Electronic MaterialLtd reporting a statutory loss of CN¥0.01 per share, where the analysts were expecting a profit. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Crystal Clear Electronic MaterialLtd

Taking into account the latest results, the current consensus from Crystal Clear Electronic MaterialLtd's dual analysts is for revenues of CN¥1.52b in 2024. This would reflect a meaningful 17% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 1,175% to CN¥0.19. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥1.80b and earnings per share (EPS) of CN¥0.17 in 2024. Indeed we can see that the consensus opinion has undergone some fundamental changes after the latest results, with a substantial drop in revenues at the same time as boosting EPS forecasts.

There's been no real change to the average price target of CN¥11.00, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Crystal Clear Electronic MaterialLtd's growth to accelerate, with the forecast 23% annualised growth to the end of 2024 ranking favourably alongside historical growth of 17% 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 16% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Crystal Clear Electronic MaterialLtd is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Crystal Clear Electronic MaterialLtd's earnings potential next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. With that said, earnings are more important to the long-term value of the business. The consensus price target held steady at CN¥11.00, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Crystal Clear Electronic MaterialLtd. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Crystal Clear Electronic MaterialLtd .

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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.