Anji Microelectronics Technology (Shanghai) Co., Ltd. Just Missed Earnings - But Analysts Have Updated Their Models

It's been a good week for Anji Microelectronics Technology (Shanghai) Co., Ltd. (SHSE:688019) shareholders, because the company has just released its latest second-quarter results, and the shares gained 7.8% to CN¥108. Revenue of CN¥419m surpassed estimates by 4.3%, although statutory earnings per share missed badly, coming in 24% below expectations at CN¥0.76 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Anji Microelectronics Technology (Shanghai)

Taking into account the latest results, the consensus forecast from Anji Microelectronics Technology (Shanghai)'s five analysts is for revenues of CN¥1.65b in 2024. This reflects a meaningful 13% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 26% to CN¥3.92. In the lead-up to this report, the analysts had been modelling revenues of CN¥1.67b and earnings per share (EPS) of CN¥3.65 in 2024. So the consensus seems to have become somewhat more optimistic on Anji Microelectronics Technology (Shanghai)'s earnings potential following these results.

There's been no major changes to the consensus price target of CN¥135, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. The most optimistic Anji Microelectronics Technology (Shanghai) analyst has a price target of CN¥146 per share, while the most pessimistic values it at CN¥118. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Anji Microelectronics Technology (Shanghai) is an easy business to forecast or the the analysts are all using similar assumptions.

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. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 28% growth on an annualised basis. That is in line with its 34% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 22% annually. So although Anji Microelectronics Technology (Shanghai) is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Anji Microelectronics Technology (Shanghai) following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at CN¥135, 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 Anji Microelectronics Technology (Shanghai) analysts - going out to 2026, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Anji Microelectronics Technology (Shanghai) , and understanding this should be part of your investment process.

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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.