Imeik Technology Development Co.,Ltd. (SZSE:300896) Just Missed Earnings: Here's What Analysts Think Will Happen Next

As you might know, Imeik Technology Development Co.,Ltd. (SZSE:300896) last week released its latest quarterly, and things did not turn out so great for shareholders. It looks like a clear earnings miss, with both revenues and earnings falling well short of analyst predictions. Revenues of CN¥719m missed by 17%, and statutory earnings per share of CN¥1.54 fell short of forecasts by 19%. 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.

Check out our latest analysis for Imeik Technology DevelopmentLtd

After the latest results, the 21 analysts covering Imeik Technology DevelopmentLtd are now predicting revenues of CN¥4.15b in 2025. If met, this would reflect a substantial 35% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 32% to CN¥8.85. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥4.47b and earnings per share (EPS) of CN¥9.45 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

The analysts made no major changes to their price target of CN¥263, suggesting the downgrades are not expected to have a long-term impact on Imeik Technology DevelopmentLtd's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Imeik Technology DevelopmentLtd at CN¥472 per share, while the most bearish prices it at CN¥180. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

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. It's pretty clear that there is an expectation that Imeik Technology DevelopmentLtd's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 27% growth on an annualised basis. This is compared to a historical growth rate of 34% 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) 23% annually. So it's pretty clear that, while Imeik Technology DevelopmentLtd'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 the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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

You still need to take note of risks, for example - Imeik Technology DevelopmentLtd has 1 warning sign we think you should be aware of.

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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.