Guizhou Zhenhua Fengguang Semiconductor Co., Ltd. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Guizhou Zhenhua Fengguang Semiconductor Co., Ltd. (SHSE:688439) just released its latest yearly results and things are looking bullish. The company beat forecasts, with revenue of CN¥1.3b, some 9.9% above estimates, and statutory earnings per share (EPS) coming in at CN¥3.05, 25% ahead of expectations. 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.

See our latest analysis for Guizhou Zhenhua Fengguang Semiconductor

Taking into account the latest results, the current consensus from Guizhou Zhenhua Fengguang Semiconductor's six analysts is for revenues of CN¥1.65b in 2024. This would reflect a substantial 27% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 21% to CN¥3.70. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥1.77b and earnings per share (EPS) of CN¥3.49 in 2024. If anything, the analysts look to have become slightly more optimistic overall; while they decreased their revenue forecasts, EPS predictions increased and ultimately earnings are more important.

The analysts have cut their price target 12% to CN¥120per share, suggesting that the declining revenue was a more crucial indicator than the expected improvement in earnings. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Guizhou Zhenhua Fengguang Semiconductor at CN¥125 per share, while the most bearish prices it at CN¥115. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Guizhou Zhenhua Fengguang Semiconductor is an easy business to forecast or the the analysts are all using similar assumptions.

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. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 27% growth on an annualised basis. That is in line with its 31% 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. It's clear that while Guizhou Zhenhua Fengguang Semiconductor's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

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 Guizhou Zhenhua Fengguang Semiconductor following these results. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. With that said, earnings are more important to the long-term value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Guizhou Zhenhua Fengguang Semiconductor's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Guizhou Zhenhua Fengguang Semiconductor analysts - going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Guizhou Zhenhua Fengguang Semiconductor has 1 warning sign we think you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.