Results: Yangzhou Yangjie Electronic Technology Co., Ltd. Exceeded Expectations And The Consensus Has Updated Its Estimates

Investors in Yangzhou Yangjie Electronic Technology Co., Ltd. (SZSE:300373) had a good week, as its shares rose 3.1% to close at CN¥36.05 following the release of its yearly results. Yangzhou Yangjie Electronic Technology missed revenue estimates by 2.1%, coming in atCN¥5.4b, although statutory earnings per share (EPS) of CN¥1.74 beat expectations, coming in 8.9% ahead of analyst estimates. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Yangzhou Yangjie Electronic Technology after the latest results.

View our latest analysis for Yangzhou Yangjie Electronic Technology

Taking into account the latest results, the consensus forecast from Yangzhou Yangjie Electronic Technology's four analysts is for revenues of CN¥6.48b in 2024. This reflects a notable 20% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 5.0% to CN¥1.80. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥6.61b and earnings per share (EPS) of CN¥1.87 in 2024. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

The consensus price target fell 15% to CN¥48.20, with the weaker earnings outlook clearly leading valuation estimates. 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 Yangzhou Yangjie Electronic Technology at CN¥53.00 per share, while the most bearish prices it at CN¥43.40. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. It's pretty clear that there is an expectation that Yangzhou Yangjie Electronic Technology's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 20% growth on an annualised basis. This is compared to a historical growth rate of 25% over the past five years. Compare this to the 213 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 22% per year. So it's pretty clear that, while Yangzhou Yangjie Electronic Technology's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Yangzhou Yangjie Electronic Technology. 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. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Yangzhou Yangjie Electronic Technology's future valuation.

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 Yangzhou Yangjie Electronic Technology analysts - going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Yangzhou Yangjie Electronic Technology that we have uncovered.

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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.