Xiamen Faratronic Co., Ltd. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

A week ago, Xiamen Faratronic Co., Ltd. (SHSE:600563) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. Results were good overall, with revenues beating analyst predictions by 5.1% to hit CN¥1.1b. Statutory earnings per share (EPS) came in at CN¥1.18, some 7.8% above whatthe analysts had 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.

View our latest analysis for Xiamen Faratronic

Following the latest results, Xiamen Faratronic's eight analysts are now forecasting revenues of CN¥4.57b in 2024. This would be a notable 13% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 17% to CN¥5.29. Before this earnings report, the analysts had been forecasting revenues of CN¥4.64b and earnings per share (EPS) of CN¥5.31 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of CN¥121, showing that the business is executing well and in line with expectations. 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. Currently, the most bullish analyst values Xiamen Faratronic at CN¥142 per share, while the most bearish prices it at CN¥117. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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 Xiamen Faratronic's growth to accelerate, with the forecast 29% annualised growth to the end of 2024 ranking favourably alongside historical growth of 21% 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. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Xiamen Faratronic to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. 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. The consensus price target held steady at CN¥121, 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 Xiamen Faratronic. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Xiamen Faratronic analysts - going out to 2026, and you can see them free on our platform here.

We also provide an overview of the Xiamen Faratronic Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.