Bestechnic (Shanghai) Co., Ltd. Just Missed EPS By 39%: Here's What Analysts Think Will Happen Next

Shareholders might have noticed that Bestechnic (Shanghai) Co., Ltd. (SHSE:688608) filed its first-quarter result this time last week. The early response was not positive, with shares down 6.9% to CN¥145 in the past week. Results were mixed, with revenues of CN¥653m exceeding expectations, even as statutory earnings per share (EPS) fell badly short. Earnings were CN¥0.23 per share, -39% short of analyst expectations. 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 Bestechnic (Shanghai)

Taking into account the latest results, the consensus forecast from Bestechnic (Shanghai)'s seven analysts is for revenues of CN¥3.14b in 2024. This reflects a meaningful 12% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 70% to CN¥3.16. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥3.00b and earnings per share (EPS) of CN¥2.78 in 2024. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a nice gain to earnings per share in particular.

It will come as no surprise to learn that the analysts have increased their price target for Bestechnic (Shanghai) 6.8% to CN¥202on the back of these upgrades. 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 Bestechnic (Shanghai) at CN¥226 per share, while the most bearish prices it at CN¥180. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. We can infer from the latest estimates that forecasts expect a continuation of Bestechnic (Shanghai)'shistorical trends, as the 17% annualised revenue growth to the end of 2024 is roughly in line with the 17% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 22% per year. So although Bestechnic (Shanghai) is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Bestechnic (Shanghai)'s earnings potential next year. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 Bestechnic (Shanghai) analysts - going out to 2026, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.