Qi An Xin Technology Group Inc. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

As you might know, Qi An Xin Technology Group Inc. (SHSE:688561) last week released its latest annual, and things did not turn out so great for shareholders. Unfortunately, Qi An Xin Technology Group delivered a serious earnings miss. Revenues of CN¥6.4b were 13% below expectations, and statutory earnings per share of CN¥0.10 missed estimates by 76%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Qi An Xin Technology Group after the latest results.

See our latest analysis for Qi An Xin Technology Group

Following the latest results, Qi An Xin Technology Group's ten analysts are now forecasting revenues of CN¥7.34b in 2024. This would be a meaningful 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 752% to CN¥0.89. In the lead-up to this report, the analysts had been modelling revenues of CN¥9.18b and earnings per share (EPS) of CN¥0.86 in 2024. It looks like there's been a meaningful change to the consensus view following the recent earnings report, with the analysts making a large cut to to revenue forecasts and a slight bump in to next year's earnings estimates.

The consensus price target fell 9.7% to CN¥50.57, with the analysts signalling that the weaker revenue outlook was a more powerful indicator than the upgraded EPS forecasts. 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. Currently, the most bullish analyst values Qi An Xin Technology Group at CN¥68.00 per share, while the most bearish prices it at CN¥31.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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 Qi An Xin Technology Group's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 14% growth on an annualised basis. This is compared to a historical growth rate of 21% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 22% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Qi An Xin Technology Group.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Qi An Xin Technology Group's earnings potential next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Even so, earnings are more important to the intrinsic value of the business. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 Qi An Xin Technology Group analysts - going out to 2026, and you can see them free on our platform here.

You can also view our analysis of Qi An Xin Technology Group's balance sheet, and whether we think Qi An Xin Technology Group is carrying too much debt, for free 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.