Beijing Yuanliu Hongyuan Electronic Technology Co., Ltd. Just Missed Earnings - But Analysts Have Updated Their Models

Beijing Yuanliu Hongyuan Electronic Technology Co., Ltd. (SHSE:603267) just released its latest annual report and things are not looking great. It looks like quite a negative result overall, with both revenues and earnings falling well short of analyst predictions. Revenues of CN¥1.7b missed by 12%, and statutory earnings per share of CN¥1.18 fell short of forecasts by 46%. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Beijing Yuanliu Hongyuan Electronic Technology

After the latest results, the twin analysts covering Beijing Yuanliu Hongyuan Electronic Technology are now predicting revenues of CN¥2.09b in 2024. If met, this would reflect a huge 24% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 172% to CN¥3.20. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥2.47b and earnings per share (EPS) of CN¥2.99 in 2024. Indeed we can see that the consensus opinion has undergone some fundamental changes after the latest results, with a substantial drop in revenues at the same time as boosting EPS forecasts.

The consensus price target fell 17% to CN¥61.45, with the analysts signalling that the weaker revenue outlook was a more powerful indicator than the upgraded EPS forecasts.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Beijing Yuanliu Hongyuan Electronic Technology's growth to accelerate, with the forecast 24% annualised growth to the end of 2024 ranking favourably alongside historical growth of 17% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 18% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Beijing Yuanliu Hongyuan Electronic Technology is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Beijing Yuanliu Hongyuan Electronic Technology's earnings potential next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Even so, long term profitability is more important for the value creation process. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Beijing Yuanliu Hongyuan Electronic Technology going out as far as 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Beijing Yuanliu Hongyuan Electronic Technology 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.