Beijing CTJ Information Technology Co., Ltd. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Beijing CTJ Information Technology Co., Ltd. (SZSE:301153) missed earnings with its latest annual results, disappointing overly-optimistic forecasters. Results showed a clear earnings miss, with CN¥825m revenue coming in 9.2% lower than what the analystsexpected. Statutory earnings per share (EPS) of CN¥0.30 missed the mark badly, arriving some 36% below what was expected. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Taking into account the latest results, the consensus forecast from Beijing CTJ Information Technology's three analysts is for revenues of CN¥1.16b in 2025. This reflects a substantial 41% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 118% to CN¥0.65. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥1.20b and earnings per share (EPS) of CN¥0.87 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a large cut to earnings per share numbers.

See our latest analysis for Beijing CTJ Information Technology

It'll come as no surprise then, to learn that the analysts have cut their price target 7.8% to CN¥36.63. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Beijing CTJ Information Technology, with the most bullish analyst valuing it at CN¥44.00 and the most bearish at CN¥31.90 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. The analysts are definitely expecting Beijing CTJ Information Technology's growth to accelerate, with the forecast 41% annualised growth to the end of 2025 ranking favourably alongside historical growth of 15% per annum 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 18% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Beijing CTJ Information Technology is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Beijing CTJ Information Technology. They also downgraded Beijing CTJ Information Technology's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Beijing CTJ Information Technology's future valuation.

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 CTJ Information Technology analysts - going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Beijing CTJ Information Technology (1 is a bit concerning) 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.