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

As you might know, Beijing Yuanliu Hongyuan Electronic Technology Co., Ltd. (SHSE:603267) last week released its latest full-year, and things did not turn out so great for shareholders. Results showed a clear earnings miss, with CN¥1.5b revenue coming in 8.3% lower than what the analystsexpected. Statutory earnings per share (EPS) of CN¥0.67 missed the mark badly, arriving some 43% below what was expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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After the latest results, the dual analysts covering Beijing Yuanliu Hongyuan Electronic Technology are now predicting revenues of CN¥2.03b in 2025. If met, this would reflect a huge 36% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 112% to CN¥1.42. In the lead-up to this report, the analysts had been modelling revenues of CN¥2.06b and earnings per share (EPS) of CN¥1.51 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

See our latest analysis for Beijing Yuanliu Hongyuan Electronic Technology

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 32% to CN¥50.63, suggesting the revised estimates are not indicative of a weaker long-term future for the business.

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 36% annualised growth to the end of 2025 ranking favourably alongside historical growth of 2.9% 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 Beijing Yuanliu Hongyuan Electronic Technology to grow faster than the wider 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 Yuanliu Hongyuan Electronic Technology. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Beijing Yuanliu Hongyuan Electronic Technology. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

Even so, be aware that Beijing Yuanliu Hongyuan Electronic Technology is showing 3 warning signs in our investment analysis , you should know about...

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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.