United Nova Technology Co.,Ltd. (SHSE:688469) Just Released Its Second-Quarter Results And Analysts Are Updating Their Estimates

Last week saw the newest quarterly earnings release from United Nova Technology Co.,Ltd. (SHSE:688469), an important milestone in the company's journey to build a stronger business. It was a moderately negative result overall - revenue fell 4.7% short of analyst estimates at CN¥1.5b, although at least statutory losses were marginally smaller than expected, at CN¥0.04 per share. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for United Nova TechnologyLtd

Taking into account the latest results, the consensus forecast from United Nova TechnologyLtd's twin analysts is for revenues of CN¥6.43b in 2024. This reflects a meaningful 13% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 22% to CN¥0.15. Yet prior to the latest earnings, the analysts had been forecasting revenues of CN¥6.62b and losses of CN¥0.16 per share in 2024. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for losses per share, even though the revenue numbers fell somewhat.

The consensus price target was broadly unchanged at CN¥4.90, implying that the business is performing roughly in line with expectations, despite adjustments to both revenue and earnings estimates.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that United Nova TechnologyLtd'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 12% over the past year. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 23% per year. United Nova TechnologyLtd is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. With that said, earnings are more important to the long-term value of the business. The consensus price target held steady at CN¥4.90, 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. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

You still need to take note of risks, for example - United Nova TechnologyLtd 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.