Beijing Sinnet Technology Co.,Ltd (SZSE:300383) Just Released Its First-Quarter Earnings: Here's What Analysts Think

It's shaping up to be a tough period for Beijing Sinnet Technology Co.,Ltd (SZSE:300383), which a week ago released some disappointing quarterly results that could have a notable impact on how the market views the stock. Results look to have been somewhat negative - revenue fell 3.7% short of analyst estimates at CN¥2.0b, and statutory earnings of CN¥0.09 per share missed forecasts by 3.4%. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Beijing Sinnet TechnologyLtd

Taking into account the latest results, the consensus forecast from Beijing Sinnet TechnologyLtd's eleven analysts is for revenues of CN¥8.84b in 2024. This reflects a meaningful 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 54% to CN¥0.32. In the lead-up to this report, the analysts had been modelling revenues of CN¥8.58b and earnings per share (EPS) of CN¥0.34 in 2024. So it's pretty clear consensus is mixed on Beijing Sinnet TechnologyLtd after the latest results; whilethe analysts lifted revenue numbers, they also administered a minor downgrade to per-share earnings expectations.

There's been no major changes to the price target of CN¥10.63, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Beijing Sinnet TechnologyLtd at CN¥18.00 per share, while the most bearish prices it at CN¥6.64. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Beijing Sinnet TechnologyLtd's rate of growth is expected to accelerate meaningfully, with the forecast 15% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 2.0% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 19% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Beijing Sinnet TechnologyLtd is expected to grow slower than 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. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. The consensus price target held steady at CN¥10.63, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Beijing Sinnet TechnologyLtd analysts - going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Beijing Sinnet TechnologyLtd 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.