Earnings Miss: Fujian Torch Electron Technology Co., Ltd. Missed EPS By 39% And Analysts Are Revising Their Forecasts

Fujian Torch Electron Technology Co., Ltd. (SHSE:603678) just released its latest yearly report and things are not looking great. Unfortunately, Fujian Torch Electron Technology delivered a serious earnings miss. Revenues of CN¥2.8b were 15% below expectations, and statutory earnings per share of CN¥0.43 missed estimates by 39%. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the most recent consensus for Fujian Torch Electron Technology from four analysts is for revenues of CN¥4.10b in 2025. If met, it would imply a major 46% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 159% to CN¥1.11. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥3.97b and earnings per share (EPS) of CN¥1.01 in 2025. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

View our latest analysis for Fujian Torch Electron Technology

It will come as no surprise to learn that the analysts have increased their price target for Fujian Torch Electron Technology 32% to CN¥39.94on the back of these upgrades. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Fujian Torch Electron Technology at CN¥44.88 per share, while the most bearish prices it at CN¥35.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. For example, we noticed that Fujian Torch Electron Technology's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 46% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 1.3% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 18% annually. So it looks like Fujian Torch Electron Technology is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Fujian Torch Electron Technology's earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is 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 Fujian Torch Electron Technology. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Fujian Torch Electron Technology analysts - going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Fujian Torch Electron Technology that 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.