Sichuan Jiuyuan Yinhai Software.Co.,Ltd Just Missed EPS By 61%: Here's What Analysts Think Will Happen Next

Sichuan Jiuyuan Yinhai Software.Co.,Ltd (SZSE:002777) missed earnings with its latest yearly results, disappointing overly-optimistic forecasters. Unfortunately, Sichuan Jiuyuan Yinhai Software.Co.Ltd delivered a serious earnings miss. Revenues of CN¥1.3b were 11% below expectations, and statutory earnings per share of CN¥0.18 missed estimates by 61%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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After the latest results, the three analysts covering Sichuan Jiuyuan Yinhai Software.Co.Ltd are now predicting revenues of CN¥1.49b in 2025. If met, this would reflect a notable 12% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 220% to CN¥0.57. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥1.71b and earnings per share (EPS) of CN¥0.56 in 2025. Indeed we can see that the consensus opinion has undergone some fundamental changes after the latest results, with a substantial drop in revenues at the same time as boosting EPS forecasts.

Check out our latest analysis for Sichuan Jiuyuan Yinhai Software.Co.Ltd

There's been a 40% lift in the price target to CN¥23.12, with the analysts signalling that the higher earnings forecasts are more relevant to the business than the weaker revenue estimates.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. 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 12% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 5.2% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 18% annually. So it's clear that despite the acceleration in growth, Sichuan Jiuyuan Yinhai Software.Co.Ltd is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Sichuan Jiuyuan Yinhai Software.Co.Ltd following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Even so, long term profitability is more important for the value creation process. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 forecasts for Sichuan Jiuyuan Yinhai Software.Co.Ltd going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 3 warning signs for Sichuan Jiuyuan Yinhai Software.Co.Ltd you should be aware of.

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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.