Sichuan Jiuyuan Yinhai Software.Co.,Ltd Just Missed Earnings - But Analysts Have Updated Their Models

It's shaping up to be a tough period for Sichuan Jiuyuan Yinhai Software.Co.,Ltd (SZSE:002777), which a week ago released some disappointing full-year results that could have a notable impact on how the market views the stock. It looks like quite a negative result overall, with both revenues and earnings falling well short of analyst predictions. Revenues of CN¥1.3b missed by 12%, and statutory earnings per share of CN¥0.41 fell short of forecasts by 23%. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Sichuan Jiuyuan Yinhai Software.Co.Ltd

Following the latest results, Sichuan Jiuyuan Yinhai Software.Co.Ltd's dual analysts are now forecasting revenues of CN¥1.61b in 2024. This would be a notable 20% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 31% to CN¥0.54. In the lead-up to this report, the analysts had been modelling revenues of CN¥1.85b and earnings per share (EPS) of CN¥0.70 in 2024. It looks like sentiment has declined substantially in the aftermath of these results, with a real cut to revenue estimates and a large cut to earnings per share numbers as well.

What's most unexpected is that the consensus price target rose 7.4% to CN¥32.08, strongly implying the downgrade to forecasts is not expected to be more than a temporary blip.

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 clear from the latest estimates that Sichuan Jiuyuan Yinhai Software.Co.Ltd's rate of growth is expected to accelerate meaningfully, with the forecast 20% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 9.9% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 22% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Sichuan Jiuyuan Yinhai Software.Co.Ltd is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. 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 analyst estimates for Sichuan Jiuyuan Yinhai Software.Co.Ltd going out as far as 2026, and you can see them free on our platform here.

We also provide an overview of the Sichuan Jiuyuan Yinhai Software.Co.Ltd Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.