National Silicon Industry Group Co.,Ltd. Just Missed EPS By 24%: Here's What Analysts Think Will Happen Next

National Silicon Industry Group Co.,Ltd. (SHSE:688126) missed earnings with its latest yearly results, disappointing overly-optimistic forecasters. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at CN¥3.2b, statutory earnings missed forecasts by an incredible 24%, coming in at just CN¥0.068 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for National Silicon Industry GroupLtd

Taking into account the latest results, the consensus forecast from National Silicon Industry GroupLtd's eight analysts is for revenues of CN¥4.10b in 2024. This reflects a huge 28% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 74% to CN¥0.12. Before this earnings report, the analysts had been forecasting revenues of CN¥4.08b and earnings per share (EPS) of CN¥0.14 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 substantial drop in EPS estimates.

The consensus price target held steady at CN¥18.02, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 National Silicon Industry GroupLtd at CN¥24.30 per share, while the most bearish prices it at CN¥19.20. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the National Silicon Industry GroupLtd's past performance and to peers in the same industry. It's clear from the latest estimates that National Silicon Industry GroupLtd's rate of growth is expected to accelerate meaningfully, with the forecast 28% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 23% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 23% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that National Silicon Industry GroupLtd is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for National Silicon Industry GroupLtd. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for National Silicon Industry GroupLtd going out to 2026, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 2 warning signs for National Silicon Industry GroupLtd you should be aware of, and 1 of them makes us a bit uncomfortable.

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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.