Earnings Miss: Changchun High-Tech Industries (Group) Inc. Missed EPS By 6.6% And Analysts Are Revising Their Forecasts

Changchun High-Tech Industries (Group) Inc. (SZSE:000661) last week reported its latest full-year results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Revenues of CN¥15b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at CN¥11.06, missing estimates by 6.6%. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Changchun High-Tech Industries (Group)

Taking into account the latest results, the current consensus from Changchun High-Tech Industries (Group)'s nine analysts is for revenues of CN¥16.7b in 2024. This would reflect a meaningful 14% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 23% to CN¥13.82. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥16.8b and earnings per share (EPS) of CN¥13.89 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at CN¥203. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Changchun High-Tech Industries (Group), with the most bullish analyst valuing it at CN¥208 and the most bearish at CN¥198 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Changchun High-Tech Industries (Group)'s revenue growth is expected to slow, with the forecast 14% annualised growth rate until the end of 2024 being well below the historical 19% p.a. growth over the last five years. Compare this to the 221 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 15% per year. So it's pretty clear that, while Changchun High-Tech Industries (Group)'s revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at CN¥203, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Changchun High-Tech Industries (Group) analysts - going out to 2026, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.