Suzhou Maxwell Technologies Co., Ltd. Just Missed EPS By 18%: Here's What Analysts Think Will Happen Next

Shareholders might have noticed that Suzhou Maxwell Technologies Co., Ltd. (SZSE:300751) filed its quarterly result this time last week. The early response was not positive, with shares down 5.5% to CN¥107 in the past week. It was not a great result overall. While revenues of CN¥2.2b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 18% to hit CN¥0.93 per share. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Suzhou Maxwell Technologies

Taking into account the latest results, the most recent consensus for Suzhou Maxwell Technologies from 18 analysts is for revenues of CN¥12.2b in 2024. If met, it would imply a huge 33% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 60% to CN¥5.47. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥11.5b and earnings per share (EPS) of CN¥6.37 in 2024. So it's pretty clear the analysts have mixed opinions on Suzhou Maxwell Technologies after the latest results; even though they upped their revenue numbers, it came at the cost of a real cut to per-share earnings expectations.

There's been no major changes to the price target of CN¥122, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Suzhou Maxwell Technologies, with the most bullish analyst valuing it at CN¥188 and the most bearish at CN¥75.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 46% growth on an annualised basis. That is in line with its 39% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 23% per year. So although Suzhou Maxwell Technologies is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Suzhou Maxwell Technologies. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at CN¥122, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Suzhou Maxwell Technologies analysts - going out to 2026, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Suzhou Maxwell Technologies (at least 1 which makes us a bit uncomfortable) , and understanding them should be part of your investment process.

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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.