Earnings Miss: Xiamen Faratronic Co., Ltd. Missed EPS By 8.7% And Analysts Are Revising Their Forecasts

Shareholders might have noticed that Xiamen Faratronic Co., Ltd. (SHSE:600563) filed its full-year result this time last week. The early response was not positive, with shares down 9.4% to CN¥112 in the past week. It looks like the results were a bit of a negative overall. While revenues of CN¥4.8b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 8.7% to hit CN¥4.62 per share. 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.

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Taking into account the latest results, the current consensus from Xiamen Faratronic's ten analysts is for revenues of CN¥5.86b in 2025. This would reflect a sizeable 23% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 27% to CN¥5.87. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥5.88b and earnings per share (EPS) of CN¥6.07 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

See our latest analysis for Xiamen Faratronic

It might be a surprise to learn that the consensus price target was broadly unchanged at CN¥131, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Xiamen Faratronic, with the most bullish analyst valuing it at CN¥151 and the most bearish at CN¥116 per share. This is a very narrow spread of estimates, implying either that Xiamen Faratronic is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. We can infer from the latest estimates that forecasts expect a continuation of Xiamen Faratronic'shistorical trends, as the 23% annualised revenue growth to the end of 2025 is roughly in line with the 21% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 18% annually. So although Xiamen Faratronic is expected to maintain its revenue growth rate, it's definitely expected to grow faster 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 reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Xiamen Faratronic going out to 2027, and you can see them free on our platform here..

You can also see our analysis of Xiamen Faratronic's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.