Analysts Just Made A Major Revision To Their Fiberhome Telecommunication Technologies Co., Ltd. (SHSE:600498) Revenue Forecasts

The analysts covering Fiberhome Telecommunication Technologies Co., Ltd. (SHSE:600498) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for next year. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

After this downgrade, Fiberhome Telecommunication Technologies' three analysts are now forecasting revenues of CN¥38b in 2025. This would be a major 29% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to leap 26% to CN¥0.61. Previously, the analysts had been modelling revenues of CN¥43b and earnings per share (EPS) of CN¥0.60 in 2025. Indeed we can see that the consensus opinion has undergone some fundamental changes following the recent consensus updates, with a substantial drop in revenues and some minor tweaks to earnings numbers.

See our latest analysis for Fiberhome Telecommunication Technologies

the analysts have also increased their price target 6.0% to CN¥20.34, clearly signalling that lower revenue forecasts next year are not expected to have a material impact on Fiberhome Telecommunication Technologies' valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Fiberhome Telecommunication Technologies' rate of growth is expected to accelerate meaningfully, with the forecast 22% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 7.9% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 22% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Fiberhome Telecommunication Technologies is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Lamentably, they also downgraded their sales forecasts, but the business is still expected to grow at roughly the same rate as the market itself. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Given the stark change in sentiment, we'd understand if investors became more cautious on Fiberhome Telecommunication Technologies after today.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Fiberhome Telecommunication Technologies analysts - going out to 2026, and you can see them free on our platform 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.