Wangsu Science & Technology Co.,Ltd. Just Recorded A 18% EPS Beat: Here's What Analysts Are Forecasting Next

Wangsu Science & Technology Co.,Ltd. (SZSE:300017) last week reported its latest annual results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at CN¥4.7b, statutory earnings beat expectations by a notable 18%, coming in at CN¥0.25 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Wangsu Science & TechnologyLtd

Following the latest results, Wangsu Science & TechnologyLtd's seven analysts are now forecasting revenues of CN¥4.94b in 2024. This would be an okay 5.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to descend 13% to CN¥0.22 in the same period. In the lead-up to this report, the analysts had been modelling revenues of CN¥5.53b and earnings per share (EPS) of CN¥0.22 in 2024. So there's been a clear change in sentiment after these results, with the analysts making a real cut to revenues and reconfirming their earnings per share estimates.

The average price target was steady at CN¥7.79even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Wangsu Science & TechnologyLtd at CN¥11.27 per share, while the most bearish prices it at CN¥4.70. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Wangsu Science & TechnologyLtd is forecast to grow faster in the future than it has in the past, with revenues expected to display 5.0% annualised growth until the end of 2024. If achieved, this would be a much better result than the 6.9% annual decline 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 revenue grow 20% per year. So although Wangsu Science & TechnologyLtd's revenue growth is expected to improve, it is still expected to grow slower than the industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. 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. The consensus price target held steady at CN¥7.79, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Wangsu Science & TechnologyLtd. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Wangsu Science & TechnologyLtd analysts - going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Wangsu Science & TechnologyLtd .

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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.